Fair Trade Commission Discusses 'Pre-Regulation of Digital Markets' at OECD Competition Committee and Others

November 29 - December 8 Online Event
Attendance at OECD Competition Committee Regular Meeting and International Competition Forum

[Asia Economy Reporter Joo Sang-don] The Fair Trade Commission (FTC) delegation, led by Shin Bong-sam, Secretary General of the FTC, will attend the OECD Competition Committee regular meeting and international competition forum held online from the 29th to December 8th.

At this OECD Competition Committee regular meeting (November 29 to December 3), topics such as "Ex Ante Regulation and Competition in Digital Markets" and "International Cooperation in Competition Law Enforcement" will be intensively discussed. During the international competition forum (December 6 to 8), experiences and opinions from various countries will be exchanged on subjects including "Economic Analysis and Evidence in Abuse of Dominance Cases" and "Measures to Promote Competition Neutrality by Competition Authorities."

The FTC will submit reports on two topics at this meeting: "Ex Ante Regulation and Competition in Digital Markets" and "Economic Analysis and Evidence in Abuse of Dominance Cases."

First, regarding ex ante regulation and competition in digital markets, since countries are introducing ex ante regulations to complement ex post competition law enforcement, the backgrounds and key contents of ex ante regulation adoption by major countries will be shared.

Major advanced countries such as the European Union (EU), the United States, Germany, and Italy view that existing regulatory frameworks or ex post law enforcement alone are insufficient to effectively address the structural problems of digital markets dominated by giant platform companies. Therefore, they are promoting the introduction of ex ante regulations centered on competition authorities. These major advanced countries commonly stipulate that platform operators above a certain scale be designated in advance, prohibit acts that restrict competition such as self-preferencing and discriminatory treatment by these giant platforms, and impose obligations to ensure data portability and interoperability. Notably, Germany has already introduced and is implementing ex ante regulations. The amended law requires prior designation of giant platforms and imposes obligations such as providing sufficient information to merchants, prohibiting self-preferencing and interference with data portability or interoperability, while designating a dedicated decision-making division through coordination within the German Federal Cartel Office.

Accordingly, the FTC will also introduce efforts to improve laws and systems to effectively respond to the monopoly of giant platforms while promoting the unique dynamism and innovation of digital markets. Specifically, through the enactment of the "Online Platform Fairness Act," the FTC plans to impose a prior obligation to draft contracts between platforms and merchants to enhance fairness and transparency in transactions.

In addition, regarding international cooperation in competition law enforcement, efficient joint response measures to the digital market, which has recently attracted international attention, will be discussed.

So far, the number of countries adopting competition laws and authorities has increased, and many businesses operate in global markets. Especially with the emergence of giant platform companies in digital markets, the need for international cooperation has greatly increased. Since the adoption of the recommendation on international cooperation in competition law enforcement in 2014, the current status of international cooperation among countries will be shared, and various international cooperation measures such as the development of standard agreements, case analysis, and OECD-level market surveys will be discussed. Additionally, to efficiently handle cases and impose appropriate measures, the possibility of introducing domestic laws or concluding bilateral/multilateral agreements that allow competition authorities to exchange confidential information under strict conditions will also be addressed.

Through participation in this OECD regular meeting, the FTC plans to grasp overseas competition policy and law enforcement trends related to ex ante regulation and competition law enforcement in digital markets, use them as references for improving domestic systems and law enforcement activities, and continuously provide information on international competition law enforcement trends to ensure that Korean companies operating abroad do not suffer disadvantages.

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