South Korea Approves Tving-Wavve Merger With Conditions to Prevent Price Hikes (Image courtesy of Yonhap)
SEOUL, June 10 (Korea Bizwire) — South Korea’s antitrust regulator said Tuesday it has conditionally approved the merger of streaming platforms, Tving and Wavve, requiring the two local companies to maintain their current subscription prices until the end of next year.
The Fair Trade Commission (FTC) said the two homegrown over-the-top (OTT) service providers must retain their existing pricing plans through Dec. 31, 2026.
If the merged entity launches a new integrated service, it must either continue offering the current pricing plans or introduce similar-tier plans at comparable price levels until the same deadline, the regulator added.
Concerns had been raised over potential anti-competitive effects following the merger announcement, with some critics warning that the integration of the two services could reduce market competition and lead to de-facto price hikes.
The FTC noted that eliminating separate subscription options and offering only a bundled plan could result in increased costs for consumers.
It also pointed out that Tving and Wavve currently hold exclusive content, such as live broadcast channels and professional baseball coverage, which limits consumers’ ability to switch to rival platforms.
“The corrective measures are aimed at preventing possible price hikes from a horizontal merger between OTT operators, thereby protecting subscribers while also preserving the intent of the merger to enhance content production and acquisition capabilities,” an FTC official said.
According to industry data, Netflix led the domestic OTT market last year with a 33.9 percent share, followed by Tving with 21.1 percent, Coupang Play at 20.1 percent and Wavve at 12.4 percent.
(Yonhap)
