Google's YouTube 'Bundling' Under Fire: Critics Slam 'Consent Decree' as a 'Get Out of Jail Free' Card

Market players are strongly criticizing the Fair Trade Commission's (FTC) move to handle Google's YouTube bundling case through a 'consent decree' settlement.

Concerns are rising that a system intended for rapid market stabilization is effectively granting a major global corporation a virtual pardon. Critics argue that Google's proposed remedies focus more on promoting its own services than on redressing damages.

Previously, Google bundled its music app 'YouTube Music' with YouTube Premium, a practice the FTC investigated for allegedly boosting its domestic music streaming market share. In response, Google submitted a self-remedy plan that included launching a 'YouTube Premium Lite' plan without YouTube Music.

The core issue lies in the effectiveness of Google's proposed corrective measures. While a consent decree allows for case closure based on a business's self-proposed remedies, Google's plan is widely seen as falling short of restoring competitive order or compensating affected companies.

Market insiders point out, "It's essentially as if the FTC is executing Google's domestic marketing expenses." A significant portion of the amount Google commits is likely to be used for its own promotional activities, such as YouTube Premium discounts or new subscriber events. This is criticized not as a punitive measure, but as an endorsement of its business operations by the FTC.

Originally, the consent decree system was introduced to expedite the resolution of minor cases, protect consumers, and resolve market instability. However, applying it to the Google case, a significant issue that has shaken the domestic music market ecosystem, without formal deliberation has fueled controversy.

This matter was recently raised during a National Assembly confirmation hearing. Joo Byung-ki, the nominee for FTC Chairperson, stated, "Consent decrees should be limited to minor cases, and it is desirable for companies with significant market dominance to undergo a formal review process," implicitly acknowledging potential issues with the current application of the system.

The FTC explains its approach as 'swift remedy,' but it faces unavoidable criticism for failing to address structural market problems and instead opening a loophole for global companies to evade regulation. Ultimately, this situation raises fundamental questions about whether the FTC can uphold the original intent of the consent decree system and apply a stringent standard to dominant market players.

Google launched a new plan called YouTube Premium Lite in India in August 2023. This plan allows users to watch YouTube without ads but does not offer background playback functionality. In relation to the current consent decree controversy, the potential introduction of YouTube Premium Lite in South Korea, excluding YouTube Music, is also drawing attention. Changes in the competitive landscape of the domestic music and OTT markets are anticipated depending on the FTC's future decisions.