South Korean mobile operators KT and LG U+ have been fined a combined 6.2 billion won ($5.6 million) after making price cuts to their corporate messaging services deemed “excessive” by regulators.
Korea's antitrust watchdog the Fair Trade Commission has fined KT 1.9 billion won and LG U+ 4.3 billion won after ruling that the operators had undermined fair market competition with their discounts, Yonhap Newsreported.
The operators were found to be taking advantage of their own mobile networks to offer prices that can't be matched by smaller competition.
According to the commission, smaller players using the mobile operators' networks offer corporate messages at an average of 9.2 won each, but KT and LG U+ had been offering services below cost.
This has led to small companies share of the market falling from 71% in 2006 to 29% in 2013, with KT and LG U+ commanding a combined 71% of the market.
According to the FTC, the size of the fines may be adjusted later after sales of the services are taken into account.