Court Overturns Fine Against Kakao Mobility for Alleged 'Call Favoritism'

The Seoul High Court has ruled in favor of Kakao Mobility, canceling the fine imposed by the Fair Trade Commission (FTC) over allegations of 'call favoritism'. On May 22, the court's Administrative Division 7, presided over by Judge Koo Hoe-geun, stated, "We annul all actions taken by the defendant against the plaintiff," and ordered the FTC to bear the legal costs. In response, Kakao Mobility expressed its commitment to continue collaborating with the taxi industry for mutual growth. Previously, the FTC accused Kakao Mobility of excluding regular taxis from its Kakao T Blue service, which was launched in 2019. This service recruits both corporate taxi companies and individual drivers as franchisees, charging a franchise fee while providing passenger call and dispatch services through the Kakao Taxi app. In February 2023, the FTC imposed a fine of 27.1 billion won on Kakao Mobility, claiming it violated franchise laws by collecting fees from drivers not using the Kakao T app. Kakao Mobility contested this, asserting that no legal violations occurred.