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Kakao Mobility subsidiary fined in South Korea for charging app fees on non-app taxi rides

( May 28, 2025, 06:02 GMT | Official Statement) -- MLex Summary: KM Solution, the operator of Kakao Blue T taxi franchise service, has been fined about 3.9 billion won ($2.8 million) and issued corrective orders by South Korea's competition regulator for unfairly collecting dispatch-platform fees from drivers even when they picked up passengers without using the Kakao app. According to the Korea Fair Trade Commission, the company collected 20 percent of drivers' total fare revenue as franchise fees covering dispatch services, royalties, marketing and maintenance, but applied dispatch platform charges even to street hailing and other app rides where no Kakao service was provided. The regulator said the practice amounts to abuse of superior-bargaining position under franchise law by setting unfair contract terms that failed to clearly specify fees would apply to non-Kakao revenue.The statement, in Korean, is attached....

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