KFTC Responds to U.S. House on Platform Act: "No Discrimination Against Foreign Companies"

Yonhap News

The Korea Fair Trade Commission (KFTC) has sent a letter to the United States Congress regarding concerns expressed over the legislative push for the Online Platform Act, stating that "there will be no discrimination between domestic and foreign companies."

On August 7, the KFTC stated in its letter to the U.S. Congress, "We plan to apply the same legal principles and standards without discrimination between domestic and foreign companies, both in the enforcement of current laws and in future legislative discussions." The commission added, "As the Platform Act requires further deliberation in the National Assembly, we will continue to gather stakeholder opinions and strengthen cooperation between South Korea and the United States throughout the legislative process."

The KFTC also noted that it sent its reply before 10:00 a.m. on August 7, the deadline set by the U.S. side, and stated that it will continue necessary communications with the United States going forward.

Previously, on July 24, the U.S. House Judiciary Committee sent a letter to the KFTC, expressing concerns about the potential impact of the Online Platform Act on American companies and requesting a briefing by August 7 on the legislative direction and its possible effects on the United States.

While there have been previous concerns raised by the U.S. business community and the embassy regarding KFTC issues, it is unusual for Congress to send an official letter, prompting criticism from civic groups who have called it interference in domestic affairs.

The U.S. Congress has been putting strong pressure on the KFTC, noting that digital regulations?identified as one of the non-tariff barriers?have become a major point of contention in South Korea-U.S. trade negotiations, especially as the tariff negotiations between the two countries reach a critical juncture.

It is reported that, in response, the KFTC decided to send a reply referencing overseas cases after consultations with relevant ministries, including the Ministry of Foreign Affairs.

The government and the ruling party are currently reviewing both the so-called "gap-gap regulation" law, which aims to regulate the monopolistic practices of large platform companies, and laws addressing power imbalances in business relationships. The strategy is to first introduce the Fairness Act for small businesses, while the monopoly regulation law?which the United States opposes?will be established later. However, legislative discussions are expected to be postponed until after the South Korea-U.S. summit scheduled for later this month.

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