South Korea's antitrust regulator said Tuesday it has fined Kakao Mobility Corp., the operator of the country's top taxi-hailing service, 15.1 billion won ($10.5 million) for unfair business practices.

Kakao Mobility is accused of manipulating its algorithm to direct more ride requests received through its mobile taxi application to cabs under its franchise, the Fair Trade Commission said.

While the app is open to both franchise and non-franchise taxis, it allegedly allowed franchise taxis to receive ride requests even when non-franchise taxis were closer to customers.

The imposed fine is significantly lower than an earlier decision of 72.4 billion won, the FTC said, explaining that the previous decision was based on an overestimation of the firm's operating profits. (Yonhap)