[Column] How to Avoid the US Path of 'Big Tech Monopoly'

[Asia Economy Reporter Kim Hyo-jin] "We must not bow to the emperors of the online economy." David Cicilline, Vice Chair of the U.S. House Judiciary Committee's Antitrust Subcommittee (Democratic representative), made this statement during the hearing with CEOs of big tech companies such as Amazon, Google, Facebook, and Apple on the 29th of last month (local time).

The Antitrust Subcommittee has been investigating the monopoly of their platforms and data since June last year, and the final report is expected to be released by the end of this month. Depending on the results, the Department of Justice may file antitrust lawsuits against some companies. The Antitrust Subcommittee plans to propose legislation to strengthen regulations once the investigation is complete. Both President Donald Trump and Democratic presidential candidate Joe Biden have advocated the need for stronger regulations.

The Antitrust Subcommittee judged that these companies are undermining market order by cutting off competitors through comprehensive mergers and acquisitions (M&A) and demonstrating power over related sectors such as finance in the e-commerce field based on vast amounts of consumer information.

Chairman Cicilline emphasized at the hearing that "(Amazon, etc.) can extract valuable data from individuals and businesses that depend on them." The Department of Justice holds the position that the system needs to be adjusted so that consumer information enjoyed through online platform monopolies can be shared with competitors.

David Cicilline, Vice Chair of the Antitrust Subcommittee of the U.S. House Judiciary Committee (Photo by Yonhap News)

The controversy arising in the U.S. mirrors the noise surrounding domestic big tech companies like Naver, which are actively entering the financial sector under the banner of 'digital and data innovation,' and the so-called 'financial company reverse discrimination' debate. The Korea Institute of Finance recently highlighted the U.S. case in its periodical 'Financial Brief' under 'Global Financial Issues,' urging that "to promote fair competition and enhance consumer benefits, it is necessary to explore ways for all platform participants to share information monopolized by big tech."

For example, in the credit information management business (MyData), financial companies provide core information such as deposits, loans, cards, and insurance when exchanging data, whereas companies like Naver may be interpreted under current regulations as not required to share valuable non-financial information such as shopping and search data.

Financial companies worry that if this imbalance is not corrected, market defense competition such as lower interest rate setting than the risk level could lead to large-scale insolvencies.

In digital finance, data is the greatest weapon, and the core of the system is to wield this weapon as safely and fairly as possible. The U.S. case can be seen as an example of the massive confusion caused by inadequate regulation. It is hoped that financial authorities will address this issue more actively in upcoming initiatives such as the 'Big Tech Consultative Body.'

This content was produced with the assistance of AI translation services.