The enactment of a law to prohibit unfair practices that giant platform operators, such as Naver and Kakao, have been engaging in to increase their market dominance has been postponed indefinitely. The Korea Fair Trade Commission (KFTC) decided to revisit the bill's main provisions due to opposition from the information technology industry. Some pointed out that the purpose of the law could be effectively nullified because even the system of pre-designating a "dominant operator" will be reconsidered.
"We are open to various alternatives and will collect additional opinions," said Cho Hong-seon, vice chairman of the KFTC, on the Act on Fair Competition Promotion of Platform Operators. "We cannot specify the timing of the announcement, but it will take time in the course of opinion gathering."
The dominant carrier predesignation system has also been on the reconsideration list. "We will further examine whether there are ways to effectively regulate platforms, which are more effective than the problematic pre-designation but would ease the burden on the industry," Cho said. The centerpiece of the Act on Fair Competition Promotion of Platform Operators is to pre-designate a handful of giant platform companies as dominant operators to strengthen oversight. Still, the bill's fundamental framework is set to be revisited.