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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Fair Trade Commission will push for the "Platform Fair Competition Promotion Act (tentative name)" aimed at monopolistic platform companies.
It is intended to prevent unfair acts by pre-designating large platform companies such as Google, Naver, and Kakao as the dominant operators.
The Platform Fair Competition Promotion Act, which the Fair Trade Commission said it will push for on the 19th, calls for pre-designating a small number of platforms with a high share enough to determine the market as "dominant platform operators" and banning four fouls.
Kakao T and Google are representative. Kakao T, which has more than 90 percent market share, manipulated its allocation algorithm to favor its affiliated taxis, which expelled its new rival Macaron Taxi from the market at the time. Kakao Mobility was fined 25.7 billion won by the FTC, but Macaroon Taxi was already on the verge of extinction, prompting criticism that it was a belated sanction. Google was fined 42.1 billion won for preventing its game companies from launching applications in One Store, but Google's market share had already exceeded 90%.
The framework of the bill announced by the FTC is similar to the European Union's Digital Market Act (DMA). It chose pre-regulation and gave platform operators a chance to explain themselves, but directly proved that there was a justifiable reason for the foul. Failure to fully explain will result in a higher level of fines than the existing Fair Trade Act. The details of the bill will be finalized after consultation between the ruling party and the government.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
