In response to a warning from the U.S. Chamber of Commerce that the Korean government’s proposed Platform Fair Competition Promotion Act (Platform Act) could violate trade agreements, the Korea Fair Trade Commission (KFTC) said that it will prick up its ears for stakeholders’ opinions.
“We would like to inform you that once the specific contents of the bill are finalized, the KFTC plans to enact the law in a fair and transparent manner while fully listening to the opinions of domestic and foreign stakeholders including those of the United States,” the KFTC said on Jan. 30.
This follows a Jan. 29 statement by Charles Freeman, senior vice president for Asia at the U.S. Chamber of Commerce. In the statement, Freeman said that the U.S. Chamber of Commerce was concerned about South Korea’s rush to pass the Platform Act.
“The Platform Act tramples on competition that clearly benefits consumers, ignoring good regulatory practices that are fundamental to sound regulatory models,” the U.S. Chamber of Commerce said. “It may arbitrarily target foreign companies and lead foreign governments to violate trade agreements.”
“In the process of enacting the law, the KFTC visited the U.S. Chamber of Commerce and listened to its opinions,” the KFTC said with regard to the statement. “We held two meetings with the U.S. Chamber and its member companies on Jan. 11 and 25, and a lecture by the KFTC chairman is scheduled for March 7 at the invitation of the U.S. Chamber of Commerce.”
The Platform Act, which the KFTC is pushing for the legislation of, aims to proactively regulate the monopolization of a few giant platforms such as Kakao and Naver. Apple and Google of the United States are also expected to be subject to the Platform Act and there have been concerns about trade issues.
“We urge the KFTC to show transparency and have open dialogues necessary for measures of this magnitude,” said the U.S. Chamber of Commerce, emphasizing the need to provide ample opportunities for stakeholders, including the U.S. business community and government, to deliver their opinions.
The KFTC is expected to finalize its consultations with relevant ministries soon and announce the Korean government’s proposal.