U.S. Online Platform Law Pressure Intensifies

[Financial News] The pressure from the U.S. regarding the enactment of the online platform law is intensifying. With the U.S. House of Representatives officially expressing concerns, there is an analysis that this is an extension of the recent trend of trade pressure such as tariffs. The Fair Trade Commission emphasized that U.S. companies will not be discriminated against and has taken steps to address the issue, but the subtle tug-of-war in economic diplomacy between South Korea and the U.S. is expected to continue.
 On the 7th, the Fair Trade Commission announced that it had sent a reply to the U.S. House Judiciary Committee, which had requested a position on the online platform law. The reply contained the message that 'both current law enforcement and future legislative discussions will be conducted with the same legal principles and standards without discrimination between domestic and foreign companies.' This is an official response prepared in consultation with related ministries such as the Ministry of Foreign Affairs.
 Previously, the U.S. House sent a letter in the name of Chairman Jim Jordan of the Judiciary Committee to Chairman Han Ki-jeong of the Fair Trade Commission on the 24th of last month, expressing concerns that the online platform law might unfairly target U.S. IT companies such as Google, Apple, and Meta. There is a perspective that South Korea's online platform law, modeled after the EU's Digital Markets Act (DMA), could act as a 'non-tariff barrier.'
 The online platform law that our government has been promoting is a bill that regulates large platform operators like Google, Naver, and Coupang from abusing their market dominance. Its purpose is to protect consumers and merchants and to create a fair online trading environment.
 The U.S. House has requested a briefing on the status of South Korea's competition policy, the details of the online platform law, and its impact on U.S. companies by 10 a.m. on the 7th (local time).
 In response, the Fair Trade Commission stated in its reply that "the platform law requires further discussion in the National Assembly" and "we will continue to gather stakeholder opinions during the legislative process and strengthen cooperation between South Korea and the U.S."
 The letter from the U.S. regarding the online platform law is interpreted as part of the recent comprehensive trade pressure strategy being adopted by the U.S.
 Although the online platform law applies to both domestic and foreign companies, the fact that many of the regulated entities are U.S.-based platform companies leaves room for the U.S. to consider it discriminatory against its companies.
 In fact, the U.S. has consistently expressed dissatisfaction with South Korea's enactment of the online platform law.
 The government and the Democratic Party of Korea are currently reviewing a plan to pursue the online platform law by dividing it into a law regulating monopolies (Monopoly Regulation Act) and a law addressing power imbalances (Fair Trade Act).
The monopoly regulation law, which the U.S. opposes, will be enacted later, while the fair trade act for small businesses will be introduced first as a strategy.
 However, the party and the government have decided to postpone the legislative discussions on the online platform law until after the South Korea-U.S. summit scheduled for later this month.  


imne@fnnews.com Hong Yeji Reporter