SK Telecom, KT fined for price-rigging

Melissa Chua
02/03/2011
News
Daily News

South Korea’s two largest carriers SK Telecom and KT were fined 1.96 billion won ($1.74 million) and 811 million won respectively for price fixing by the country’s antitrust watchdog.

The two firms, along with Loen Entertainment and Mnet Media had been penalised for allegedly rigging prices of DRM-based digital music download services in the country. The four were fined a total of 18.8 billion won.

According to the Yonhap news agency, the companies had covertly collaborated to fix prices and protect profits after a minor content provider, Soribada, launched a cheaper service for non DRM-based music files.

The process apparently also led to price rigging on the part of content providers such as Sony Music Entertainment Korea, Universal Music and Warner Music.

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