The Era of OTT and Online Platforms... KCC Strengthens Regulations on Unfair Practices

2022 Business Plan Presentation

[Asia Economy Reporter Cha Min-young] As the era of TV fades and the influence of online video services (OTT) and platforms rapidly increases, the government is set to revise regulations to better suit the domestic broadcasting and telecommunications landscape. The focus is on enacting the 'Online Platform User Protection Act' alongside preventing unfair practices by application (app) market operators and strengthening their social responsibilities.

The Korea Communications Commission (KCC) announced its 2022 work plan on the 23rd, which includes these measures. The core tasks are ▲creating a sustainable broadcasting and telecommunications ecosystem ▲establishing regulations and services suitable for the media convergence era ▲enhancing the rights and interests of broadcasting and telecommunications users.

Online Platform and App Market Regulation

The KCC plans to promote the enactment of the Online Platform User Protection Act to foster a cooperative environment among online platforms, ensuring these operators fulfill social responsibilities commensurate with their influence and protect users. A regulatory framework considering the multifaceted relationships among platform companies, service providers, and users will be established.

Detailed types and criteria for judging unfair practices by app market operators and acts detrimental to user interests will be stipulated in subordinate legislation. If violations are found during comprehensive inspections of app market operations, strict measures will be taken. According to a KCC survey, 37.8% of domestic app developers have experienced app registration refusals, review delays, or app deletions.

To support the growth of the broadcasting and telecommunications industry, the KCC will review the scope of reductions and collection rates for contributions to the Broadcasting and Telecommunications Development Fund. When sponsorship products' efficacy is addressed in broadcasting programs, mandatory sponsorship disclosures will be imposed, and the linkage programming status between terrestrial and comprehensive programming channels and home shopping will be regularly inspected.

The KCC will also pursue amendments to the Telecommunications Business Act to establish grounds for network usage-related surveys and prohibit unfair practices, aiming to create a fair network usage environment.

It will define the responsibilities of public broadcasters, which differ from private broadcasters, and promote the introduction of a public broadcasting agreement system to ensure compliance. Additionally, it will support amendments to the Broadcasting Act concerning the appointment procedures for public broadcasting directors and presidents and improvements to the license fee system.

Measures to future-proof the regulatory system will also be pursued. In response to environmental changes such as the rapid growth of online media, a 'Audiovisual Media Services Act' will be prepared, comprehensively considering competition activation among media services, enhancement of public interest, and user protection. Furthermore, complex broadcasting advertising regulations will be shifted to a negative regulation system that allows by principle and prohibits by exception, and programming regulations will be relaxed.

24-Hour Rapid Review of Sexual Crime Content... Dedicated Center for Communication Failures

The KCC will monitor compliance with technical and managerial obligations to prevent the distribution of digital sexual crime content by internet service providers and operate a system for rapid review and blocking of such content within 24 hours.

At a briefing, KCC Secretary-General Choi Seong-ho addressed concerns about privacy invasion and censorship related to these measures, stating, "These measures have nothing to do with censorship or freedom of expression. They are simply mechanisms to filter whether content constitutes sexual crime material," and added, "We will proceed according to existing policies to ensure no issues arise."

The KCC will establish and operate an 'Online Service Damage Counseling Center' to systematically guide solutions and procedures for effective redress of damages related to online services. To minimize damage during communication failures, it will expand notification methods to users and shorten the notification time standards when value-added communication services are interrupted.

Support will also be provided for amendments to the Terminal Distribution Act to raise the limit on additional subsidies paid by retailers to buyers when purchasing mobile phones from 15% to 30% of the publicly supported subsidy. This aims to stimulate competition in the mobile terminal market.

Secretary-General Choi said, "The existing system had many shortcomings in terms of the rapidly changing media environment and user protection," and added, "Next year, we will focus our efforts on preparing and establishing new systems."

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