(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] The Fair Trade Commission has launched an on-site investigation into allegations that Kakao Entertainment has discriminated against music distribution fees in ways favorable to its affiliates.

According to the industry on the 11th, the FTC sent an investigator to the headquarters of Kakao Entertainment to secure data on the music distribution contract.

Earlier, Big Planet Made reported to the Fair Trade Commission that Kakao Entertainment is discriminating against music distribution fees.

They claim that Kakao Entertainment requires a commission of around 20 percent for ordinary companies, while charging related companies about 5 to 6 percent.

The Fair Trade Commission, which reviewed the report, is said to have launched an investigation into Kakao Entertainment's fee-charging method, believing that it could constitute unfair trading.

An FTC official said, "We cannot confirm the issue under investigation," but added, "We will take strict measures if we find that the law is violated."

 

 

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