[Alpha Biz= Kim Jisun] Naver is facing controversy for blocking advertisements from AI startups, citing competition concerns. Critics argue that such actions contradict the spirit of cooperation needed to enhance national AI competitiveness.
According to industry sources on Thursday (March 7), Naver notified AI startup Wrtn Technologies on February 27 that its performance-based display ads were being rejected due to competition with Naver’s own services. Naver stated, "The service has been identified as a competing service with Naver and will not pass our business channel review."
Wrtn had been running ads on Naver for nearly two years without issue but was suddenly blocked. When the company requested a review earlier this month, Naver reaffirmed its decision, stating, "Advertising for competing services is restricted."
This means Wrtn will no longer be able to place targeted display ads on Naver News, Blogs, or Shopping tabs, where businesses typically showcase their services with brief descriptions and images.
Wrtn began advertising on Naver in August 2023, paying for ad placements for 1 year and 8 months before the sudden restriction.
Naver’s advertising policy states that ads may be rejected if they contain false information, damage the platform’s credibility, pose legal or financial risks, or violate Naver’s terms. However, the policy does not explicitly mention restrictions on competitor advertisements.
Following backlash, Naver has now begun reviewing and improving its ad policies.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
