Seoul, Nov 27
Google will launch a cheaper version of its YouTube Premium subscription without its music streaming component in South Korea, the country's antitrust watchdog said on Thursday, following months of investigation into alleged anti-competitive practices.

The move is part of a self-proposed corrective measure agreed upon by the U.S. tech giant and the Fair Trade Commission (FTC), which has been probing the company over suspicions that bundling YouTube Music with YouTube Premium violated fair trade rules, reports Yonhap news agency.

Under the decision, Google will introduce YouTube Premium Lite, a video-only subscription that includes advertisement removal, background playback and offline viewing services, the FTC said. Existing YouTube Premium and YouTube Music Premium subscriptions will continue to be available.

YouTube Premium Lite is expected to be priced at 8,500 won (US$5.80) per month for Android and web users and 10,900 won per month for iOS users, the FTC said. YouTube Premium currently costs 14,900 won, while YouTube Music is offered separately for 11,990 won per month.

The new service, currently available in 19 other countries, will be launched in South Korea at the lowest relative price compared with other major markets, officials said.

"The pricing will remain in effect for at least one year and, even if adjustments are made, will stay lower than prices in major overseas markets for up to four years," an FTC official said.

Google is required to launch YouTube Premium Lite within 90 days of receiving the consent decision.

In July last year, the FTC issued a report equivalent to a formal prosecution complaint, accusing Google Korea of unfairly bundling YouTube Music with YouTube Premium, thereby restricting consumer choice and abusing its market dominance.

The regulator claims Google's practice effectively forced consumers to subscribe to both services, limiting options for those who may have only wanted access to ad-free video streaming.

Rather than pursuing a prolonged legal battle, Google has submitted a corrective action plan under the FTC's procedure known as a "consent decision." The mechanism allows the FTC to suspend its investigation if the company voluntarily proposes measures that address the alleged consumer harm.

Some critics have asked whether citing the consent decision without determining the legality of Google's alleged violations amounts to giving the company a free pass.

The FTC said the consent decision system is widely used internationally as a way to quickly and effectively restore competitive conditions and take necessary corrective measures.

Antitrust probe: Google to launch YouTube Premium without music service in S. Korea