"Measure Individual Platform Monopoly Power to Vary Worker Protection Levels"

KDI Focus 'Designing Social Protection for Platform Workers'

As discussions on protecting domestic platform workers have centered on whether they qualify as employees, a diagnosis has emerged that individual worker protection regulations are needed based on each platform's distinct 'labor demand monopoly power.' Since competition situations and protection needs vary across platform sectors, applying uniform standards is likely to lead to overregulation.

On the 23rd, Han Yosep, a research fellow at the Korea Development Institute (KDI), made this suggestion in 'KDI Focus No. 124.' Labor demand monopoly power of a platform is a concept symmetrical to a company's monopoly power. Just as a company with strong monopoly power can set prices higher than production costs for consumers, a company with strong demand monopoly power can exert the power to set lower fees for platform workers.

The problem lies in the difficulty of generalizing labor demand monopoly power across different platform sectors. The research fellow stated, "Since competition situations differ and the need for worker protection varies, labor demand monopoly power should be measured based on data from each platform, and different regulations should be applied accordingly."

He added, "In cases where workers have ambiguous status between being business operators and employees, it is necessary to initially regard them as business operators but measure the demand monopoly power of the platform they work for to proportionally determine the level of social protection. If a certain level of demand monopoly power is measured, the level of intervention can be gradually strengthened." For example, if demand monopoly power is judged to exceed a certain threshold, it can be considered that the platform holds a 'transactional position,' and regulations related to abuse of such position can be applied.

Regulations on algorithm transparency can also be differentiated stepwise according to demand monopoly power. The higher the demand monopoly power, the greater the requirement for algorithm transparency. He said, "The higher the demand monopoly power, the more algorithm transparency can be required," and added, "It is possible to consider imposing an obligation on platforms to provide explanations, including the right for humans to retrospectively review and challenge automated decisions related to task assignments."

As major delivery app companies introduce measures to reduce delivery fees and the number of users begins to rise, a motorcycle delivery worker is making deliveries early in the morning on the 8th in downtown Seoul. Photo by Jinhyung Kang aymsdream@

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