South Korea Plans Meeting with US Chamber on Platform Regulation

The Korea Fair Trade Commission (KFTC) has announced plans to convene a teleconference with the U.S. Chamber of Commerce. The purpose of the teleconference is to gather insights and perspectives from American companies regarding Korea’s proposed plans to regulate market-dominant online platforms.

The decision to engage with the U.S. Chamber of Commerce comes after the KFTC realized the distinction between the U.S. Chamber and the American Chamber of Commerce in Korea (AMCHAM). Previously, the commission had primarily interacted with AMCHAM officials to discuss the proposed Platform Fair Competition Act, designed to curb unfair practices by monopolistic online and mobile platforms by designating certain companies as “influential players.” However, as concerns from U.S. firms regarding this act escalated, the KFTC sought to widen its engagement to encompass the broader U.S. business community represented by the U.S. Chamber of Commerce.

An official at the KFTC’s digital economy policy division, responsible for handling platform regulations, stated, “We plan to meet the U.S. Chamber, although it remains unclear when we will hold the meeting.” This decision follows last month’s issuance of a statement by the U.S. Chamber criticizing Korea’s planned regulations as unfair. The KFTC, in response to criticism, initially failed to distinguish between the U.S. Chamber and AMCHAM in its press release, emphasizing its past and upcoming meetings with AMCHAM to defend its engagement with the American business community in Korea.

Upon being informed by The Korea Times about the distinction between the U.S. Chamber and AMCHAM and asked about communication with the U.S. Chamber regarding the platform law, the KFTC promptly corrected its press release.

The proposed Platform Fair Competition Act has sparked debates both domestically and internationally, with proponents arguing for the necessity of regulations to ensure fair competition and protect consumers, while opponents, including some U.S. businesses, express concerns about potential negative impacts on innovation and market dynamics.

The upcoming teleconference between the KFTC and the U.S. Chamber of Commerce signifies a pivotal moment in the ongoing discussions surrounding digital market regulations, highlighting the importance of international cooperation and dialogue in addressing complex regulatory challenges in the digital age.

Source: Korea Times