[Public Voices] The 'Platform Act' to Regulate Monopolies Must Be Announced Without Delay

The Fair Trade Commission's Additional Public Consultation is a Step Back
Bundling and Other Practices Ultimately Burden Consumers

Recently, the Korea Fair Trade Commission postponed the announcement of the government's original plan after discussing the enactment of the 'Platform Fair Competition Promotion Act (Platform Act)' and decided to undergo additional public consultation procedures. It appears to have taken a step back due to industry concerns and opposition regarding the pre-designation system for 'dominant operators' with significant market influence, which was the core of the bill. It is truly regrettable that neither the specific drafting process of the bill nor the process of retreat is properly known.

People are already living within the platform business ecosystem. When they wake up in the morning, they check the news on platforms, call taxis to get around, and order lunch delivery. They also order clothes for spring and book flights and accommodations for vacations. During leisure time in the evening, they spend the whole day consuming various services on platforms, such as reading webtoons, listening to music, and watching entertaining videos. The term 'platform worker' has even emerged, and the scale of related businesses and transaction volumes are growing day by day.

However, there are only a few platforms familiar to consumers. Over time, there is a growing sense of dependency on a single platform. In some fields, there is almost a monopolistic platform with no suitable alternatives, and users may not switch to other platforms due to benefits, convenience, or familiarity. The problem is that these giant platforms are no longer consumer-friendly and may increase consumer burdens through monetization or bundling as needed.

Some platforms have unilaterally monetized or raised subscription fees after securing a large number of users. They have forced app developers, who can be considered small and medium-sized businesses in the platform ecosystem, to use in-app payments and imposed high commissions. High fees have been applied to small sellers, delivery workers, and taxi drivers, ultimately passing the burden on to the final consumers.

The regulatory movement against large platform companies is not unique to Korea. The European Union (EU) has implemented the 'Digital Services Act' and 'Digital Markets Act' starting this year to pre-designate dominant operators and regulate unfair trade practices. Apple, which forced app developers to use in-app payments and charged commissions up to 30%, has lowered commissions and allowed alternative payments only in Europe. As seen in this case, regulations can act on a few monopolistic platforms, but for the many app developers, startups, and businesses using these platforms, it can reduce excessive costs caused by monopolies, providing a foundation for market entry and innovation, and sharing innovation benefits with consumers.

Korea regulates the abuse of dominant positions by platform operators under existing laws such as the Fair Trade Act and the Electronic Commerce Act. However, it is questionable whether these laws can effectively regulate the unique characteristics of platforms and adequately protect the weaker market participants who feel compelled to accept unfavorable conditions in the entrenched platform ecosystem. Although the Electronic Commerce Act was amended to regulate dark patterns by platform companies that cause consumer harm, such patchwork measures to supplement the law after damage occurs are insufficient.

The Fair Trade Commission must keep its public promise to urgently establish institutional measures that can effectively regulate monopolistic behavior by platform companies. Rather than hesitating to prepare and announce the bill, it should enact laws to regulate platform monopolies as soon as possible and ensure they operate effectively in the market.

Kang Jeong-hwa, President of the Korea Consumer Federation

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