Korea’s antitrust regulator has approved Kakao’s acquisition of a 39.86 percent stake in K-pop agency SM Entertainment, contingent upon the implementation of corrective measures.
The Fair Trade Commission (FTC) said on Thursday that it has imposed two forms of corrective measures to address concerns that the merger of Kakao, a major IT company that owns the music streaming service Melon, and SM Entertainment, may pose a threat to competition in the digital streaming market.
Firstly, Kakao is prohibited from unreasonably refusing, suspending or delaying music supply by Melon’s competitors upon their request. Secondly, the agency has mandated Kakao to establish an independent body comprising at least five external members to regularly monitor Kakao’s potential favoritism toward Melon.
Kakao is required to comply with these corrective measures for three years. However, it may seek the cancellation or modification of some or all of the measures if significant changes occur in market conditions.
Source: https://koreajoongangdaily.joins.co...ition-approved-by-antitrust-regulator/2038314