The CCIA, a global IT organization representing major tech companies such as Amazon, Meta, and Apple, refuted the claim made by the Korean Fair Trade Commission (KFTC) that “overseas countries are accelerating the enactment of platform regulation laws.”
On June 6, Trevor Wagener, the Director of Research and Chief Economist at the CCIA, stated in a public statement on the association’s website, “It’s false that KFTC officials claim that the U.S. is pushing for and planning to pass a law similar to the Digital Markets Act (DMA), and Korea should follow suit.”
Despite the growing opposition to introducing the Platform Competition Promotion Act (Platform Act) in February 2024, the KFTC declared a full review. However, in May, KFTC Chairman Han Ki Jeong formalized the reintroduction of the Platform Act, including the prior designation system.
The KFTC’s Platform Act is modeled after the European Union’s (EU) DMA, focusing on the prior designation of dominant platforms in the market. Han emphasized the push for the Platform Act’s prior designation system on May 16, stating, “The EU’s DMA has a prior designation system, and so do the U.K. and Germany. The Japanese bill also presupposes prior designation, and most legislative examples and related bills are structured to include a prior designation system.”
Wagener countered, “The American Innovation and Choice Online Act (AICOA), which was discarded by the 117th Congress two years ago, has not seen any serious efforts to revive it in the current 118th Congress.”
The AICOA is an online platform regulation bill known as the American version of the EU DMA. Various online platform regulation legislations have been pursued in the U.S., but related bills have been discarded due to concerns about over-regulation.
Wagener explained that only 2-8% of the bills introduced during each congressional term in the U.S. have been enacted into law, and there has been no movement on at least 80% of the bills introduced each term.
In other words, contrary to the KFTC claims, the AICOA is merely reintroduced, which does not mean the bill is actively being pursued or passed.
An IT industry insider said, “The Korean National Assembly Legislative Research Service recently warned that regulation based on the prior designation system needs to be cautious. With the U.S.’s public criticism, there are concerns about trade issues. The KFTC claimed it would listen to industry opinions but still insists on regulation based on the prior designation system, raising questions about its true willingness to communicate.”