"Online Platform Fairness Act, Outdated... Hinders Innovation"

[Asia Economy Reporter Bu Aeri] There are claims that the Online Platform Fairness Act is outdated and may hinder market autonomy.

The Korea Internet Corporations Association held a forum titled "The Present of Online Brokerage Transactions and the Online Platform Fairness Act" on the 22nd. Legal experts attended the forum to discuss the "Draft Act on Fairness in Online Platform Brokerage Transactions" proposed by the Fair Trade Commission.

According to the draft, platform operators must include 14 mandatory items in contracts with tenant businesses, such as whether they restrict entry to other platforms, criteria for product and service exposure, and the impact of commissions on search results. The Fair Trade Commission plans to establish a standard contract to curb the abuse of transactional dominance by online platforms. The draft also prohibits businesses with superior transactional positions from abusing that status to engage in unfair practices.

Professor Jeong Hyeryeon of the Police University Law Department, the first presenter, pointed out, "In an era where digital technology development requires traditional industries to seek change, applying traditional regulations to online platform operators is outdated," adding, "It may be criticized for hindering technological and service development and innovation."

Professor Lee Seungmin of Sungkyunkwan University Law School stated, "Online platform transactions are difficult to capture under a specific type, making it inappropriate to subject them to uniform regulation. It is questionable whether detailed and thorough market analysis and review exist," and added, "Excessive scope and content of legal application may hinder market autonomy, creativity, and dynamism."

Professor Lee Kyungwon of Dongguk University Economics Department also emphasized, "Theoretical approaches to unfair practices are difficult, so controversies will continue for a considerable period," and stressed, "It is necessary to examine whether market failure is likely in the areas where online platforms operate, whether the current regulatory system is insufficient, and if regulation is implemented, whether there are ways to resolve asymmetric regulation."

Professor Lee Byungjun of Hankuk University of Foreign Studies Law School expressed concern, saying, "Even if standard contracts or terms are introduced, companies pursue independent interests behind them," and added, "Unlike Europe, Korea's domestic and foreign platform companies are growing in a balanced manner, but enforcing laws considering only one side will cause imbalance."

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