Antitrust agency to push ahead with controversial platform law despite opposition from U.S. firms

By Park Jae-hyuk, The Korea Times - The Fair Trade Commission (FTC) reiterated its stance to introduce a law to predesignate market-dominant online platforms to prevent unfair practices, during a high-profile meeting between commission Chairman Han Ki-jeong and members of the American Chamber of Commerce in Korea (AMCHAM), Thursday.

The meeting ended without tangible progress on the proposed Online Platform Act, raising concerns among U.S. tech giants about the potential to inadvertently favor Chinese late movers such as AliExpress and Temu, which are unlikely to be affected by the regulation due to their relatively low market shares.

An AMCHAM official noted that representatives from major U.S. platform operators like Google, Apple, and Meta did not attend the event, but cautioned against interpreting their absence as a deliberate "boycott."

“They were not able to attend this event because they had other appointments,” the official said. The U.S. tech firms also did not participate in the business lobby's meeting with an FTC secretary general in January.

In his welcoming remarks at the event, AMCHAM Chairman James Kim addressed the platform act, urging the Korean government to allocate sufficient time for thorough consultations with the industry before introducing new legislations.

“To unlock Korea’s true potential, it is imperative to ensure a fair and transparent business environment for both domestic and foreign companies,” he said. “Our survey shows that an unpredictable regulatory landscape is the primary concern for the AMCHAM business community.”

The FTC chairman, who introduced the commission’s policy plans for this year, said that it will push for the enactment of the platform act, although the antitrust agency indicated its intention last month to reconsider the legislation of the controversial act from the ground up.

“We are committed to pursuing legislation aimed at swiftly and effectively preventing fallout from monopolistic online platforms,” he said. “After listening to opinions from industry insiders and stakeholders, we will propose a reasonable bill.”

However, after the event, he declined to answer reporters’ questions about the FTC’s plan for the legislation.

In February, the watchdog indefinitely postponed the disclosure of a detailed government plan, which was initially expected to be announced before the Lunar New Year.

Both AMCHAM and the FTC explained that the main purpose of their latest meeting was to introduce the Korean government's overarching antitrust policies for the year to U.S. companies, rather than solely focusing on discussions regarding platform regulations.

Source: https://www.koreatimes.co.kr/www/tech/2024/03/133_370213.html?na 

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