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South Korea's antitrust regulator is conducting an on-site inspection of Netflix and Wavve, two over-the-top streaming platforms. The investigation centers on suspicions that these platforms have failed to notify users of terms regarding early subscription cancellations properly. The probe began following concerns about the companies' subscription policies.
FTC Inspects Netflix and Wavve Offices
Korea Times reported that the Fair Trade Commission (FTC) dispatched inspectors to Netflix and Wavve's offices in Seoul. The inspectors secured documents related to the platforms' terms of use and customer response policies regarding unsubscribing from their services. The investigation aims to uncover any irregularities in the companies' practices.
According to Korea Bizwire, Netflix and Wavve are accused of creating obstacles for users attempting to cancel their subscriptions early for a partial refund. Users have reportedly faced challenges obtaining adequate information on canceling their memberships within the billing period. The investigation seeks to address these alleged shortcomings in user communication.
FTC Leads Investigation on Subscription Practices
The probe is being led by a specialized team within the FTC dedicated to conducting swift and intensive investigations. The team focuses on cases that garnered significant public attention due to their potential impact on consumers. The FTC is committed to addressing any violations uncovered during the investigation.
Netflix and Wavve User Base
Netflix is the leading video-on-demand streaming service in South Korea, boasting over 11.64 million monthly users as of the end of 2023. Wavve, owned by South Korea's SK Square Co., ranks fourth with 4.05 million users. These platforms play a significant role in the country's digital entertainment landscape.
Consumer Responses and Market Impact
The investigation into Netflix and Wavve has prompted varied reactions among consumers and market analysts. Some users have expressed frustration over the difficulties in subscription management, calling for more precise policies and easier access to cancellation options.
On the other hand, financial experts speculate on the potential impact this probe might have on the streaming services' market share and subscriber growth rates. The outcome of the FTC's investigation is keenly awaited, as it could lead to significant changes in how subscription-based companies operate within South Korea, setting a precedent for consumer rights and corporate transparency in the digital age.
Photo: Thibault Penin/Unsplash
