The Korea Communications Commission (KCC) announced that it has initiated a fact-finding investigation to confirm the violation of the Telecommunications Business Act by Naver’s news service starting from Sept. 25.
Since July 5, the KCC has been conducting a factual investigation to determine whether Naver’s news service violated the Telecommunications Business Act.
Based on the results of the factual investigation, the KCC has determined that Naver may have violated the regulations on prohibited acts, including unfair discrimination against specific users, imposing unfair conditions or restrictions, and failing to disclose important information. Consequently, the KCC has commenced on-site investigations and further fact-finding inquiries regarding Naver.
As South Korea’s largest search portal operator, Naver wields significant influence in the media landscape with a dominant market share of 66.7 percent in news. Therefore, it has been a subject of ongoing discussions and debates concerning its social responsibility and fairness.
The news algorithm has been pinpointed as a factor directly linked to issues such as the arrangement of articles from news agencies and the bias towards specific media outlets. In light of concerns over potential business discrimination and distortion of public opinion arising from these factors, an investigation has been launched to assess the situation.
The KCC intends to use this fact-finding investigation to determine whether Naver’s actions align with violations of the Telecommunications Business Act. If violations are confirmed, the KCC plans to take strict and resolute measures, including imposing the maximum penalty under the law, which is 1 percent of related revenue, and initiating criminal proceedings.
The KCC had issued a stern warning to Naver regarding its handling of the previous fact-finding investigations, citing delays and non-submission of requested documents. In the future, the KCC will take possible legal measures, including imposing fines for non-compliance if any obstructive actions during the fact-finding process persist.