South Korean Communication Commission (KCC) has reportedly fined Google KRW 867 million (around $744,000). Because the KCC deemed Google has violated some rules in providing the YouTube Premium service.
It limited the users’ right to terminate their middle-of-the-road use of YouTube premium services. And it also did not notify them of important matters such as service charges and cancellation or refund policies.
Google says it has provided users with options and information. Some raise the possibility that Google will file a lawsuit against the commission’s disposition.
Google allegedly overcharge users for YouTube Premium
After installing the YouTube app, the KCC confirmed that there will be a sales window that will induce free experience for one month. And that clicking on it will lead to a subscription process for paid services rather than free of charge. It revealed that the e-mail address registered at the end of the free experience period. Even if there is no prior notice, or even if not notified, was one-sidedly notified.
In addition, Google will not immediately process a user’s request for termination during the monthly payment period of its “Youtube Premium” service. And it will have the cancellation effect on next month’s payment date. After applying for termination, the users did not get a refund of fees for the period during which they did not use the service.
The KCC explained that Google’s act of restricting the right to terminate the contract runs counter to the principle of civil law, which requires users to immediately lose effect and provide refunds in proportion to the remaining period.
The commission stressed that it has caused financial damage to users and violated the rules of the Telecommunications Business Act.
In particular, the latest fine on YouTube premium services is the first case of sanctions on subscription-type services. The commission’s policy fine is between KRW 400 million and 800 million. And given the level of the penalty, the commission viewed Google’s case as a “significant act.”
