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Korea’s Antitrust Bill To Regulate Online Platforms In Trouble

By  |  February 22, 2021

A bill from South Korea’s antitrust regulator aimed to govern dominant e-commerce platforms is still pending in the National Assembly due to a tug of war between two government bodies, the Fair Trade Commission (KFTC) and the Korea Communications Commission, reported The Korean Times.

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    In the meantime, platform operators and local customers have been raising their concerns, viewing the regulatory move as excessive market intervention.

    A survey conducted by Korea Startup Forum showed Monday, February 22, that around 61% of respondents were against the government’s new restrictions on companies that operate as e-commerce platforms, particularly those that provide delivery services such as Coupang. Only 26.2% of survey participants said that they support the government’s new regulation.

    The bill, drafted by the country’s antitrust watchdog in September last year, aims to prevent unfair trade practices in the e-commerce platform sector.

    The KFTC stated the new bill was designed to limit abuses of market power in the e-commerce industry and prevent contract issues that could jeopardize local small and mid-sized enterprises.

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