KCC Conducts Inspection on Naver News 'Artificial Algorithm Intervention'... "Fines and Prosecution if Law Violated"
The Korea Communications Commission (KCC) announced on the 2nd that it will conduct an on-site inspection to determine whether there has been a violation of the Telecommunications Business Act, including prohibited acts, in relation to recent allegations of artificial intervention in Naver's news search algorithm.
Naver operates a review committee for its AI-based portal news algorithm that recommends news according to user consumption patterns. In this process, it has been pointed out that popularity indicators of media outlets were artificially applied, causing certain media companies to be highlighted or disadvantaged.
Article 50 of the Telecommunications Business Act and Article 42 of its Enforcement Decree prohibit imposing unreasonable or discriminatory conditions or restrictions unfairly on those who provide other services using telecommunications services.
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The KCC plans to inspect Naver for any violations of these regulations. If violations are found during this inspection, it will transition to a fact-finding investigation, and if the violations are confirmed, it will take measures such as imposing fines of up to 3% of the average annual sales according to relevant laws and regulations, as well as criminal prosecution.
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