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On October 22, 2024, the National Assembly Research Service (NARS), together with the Platform Law & Policy Society, co-hosted a seminar on “Major Issues and Prospects of Online Platform Regulation Bills.” The seminar was designed to explore the legal and policy direction of online platform regulation by reviewing and analyzing bills dealing with antitrust platform regulation and fair trade practices—that is, those being proposed in the 22nd National Assembly, the current session—from various perspectives.
The seminar featured two presentations—“Comparative Analysis of Antitrust Regulation of Online Platform ACT” and “Comparative Analysis of the Fairness in Online Platform Intermediary Transactions ACT”—and follow-up discussions by experts in the fields of law, economics, and business management.
In the first presentation, “Comparative Analysis of Antitrust Regulation of Online Platform ACT,” Lee Ho Young (Professor, Hanyang University School of Law) provided an analysis of online platform antitrust regulation bills proposed in the 22nd National Assembly and introduced specific details on the scope and the applicable standards of antitrust regulation acts in major regions such as the European Union, the United Kingdom, and Germany. He also discussed how to prescribe provisions on prohibited acts, legitimate grounds thereof, and how to satisfy the burden of proof. During his presentation, Professor Lee mentioned that in the case of adopting ex-ante regulation for online platform antitrust regulation, there is a need to define the purpose of regulation clearly and to fully examine whether ax-ante regulation can help the ACT to be executed effectively and promptly.
In the second presentation, “Comparative Analysis of the Fairness in Online Platform Intermediary Transactions ACT,” Yoo Young-guk (Professor, Peace and Liberal Arts College, Hanshin University) addressed online platform regulation trends proposed by the government and the National Assembly to date. He compared and analyzed the key provisions of the said bill proposed in the 22nd National Assembly, and suggested expectations and considerations for future legislation depending on how it is proposed. In terms of legal framework, Professor Yoo also raised concerns regarding the direction of online platform regulation (amendments to Fair Trade and Fair Transactions in Large Retail Business) recently announced by the Korea Fair Trade Commission.
In the panel discussion that followed, Lee Sang-kyu (Professor, Chung-Ang University School of Economics) explained the characteristics of online platforms, such as “indirect network externality, free services, and intermediary power,” and argued that it is necessary to discover policies that can promote competitiveness through economic analysis and come up with measures to implement them.
Seo Jung (Lawyer, Hannuri Law Firm) argued that current laws formulated on the traditional offline economic environment and market share cannot fully deal with various issues arising in the online platform economy, and suggested that there is a need to, at the least, first introduce ax-ante regulation in specific areas such as Internet OS, browsers, app markets, etc., where market dominance will continue for the time being.
Yoo Byung Joon (Professor, Seoul National University Graduate School of Business) emphasized that the government’s recent initiative to regulate online platforms (such as settling settlement dates) may hinder the innovation of startups and put more pressure on the small and medium-sized companies.
Park Seol-min (Deputy Director, Platform Fair Competition Policy Division of the Korea Fair Trade Commission) explained that online platform regulation to protect small and medium-sized businesses is necessary as a means to prevent the recurrence of various social problems related to online platforms, and that the measures proposed by the government should not put pressure on platform operators. He also mentioned that the sales threshold to be determined as “dominant platforms” may be lowered from 4 trillion won to 3 trillion won in the recent amendment to the Fair Trade Act by the Korea Fair Trade Commission, taking into account concerns such as the regulatory burden on startups.
Choi Eun-jin (Legislative Research Officer, NARS) said that before having a legislative discussion on online platform regulation, it is necessary to first review the limitations of the Fair Trade Act when applying the act to the issues arising in the online platform market, and then set the aim and direction of a new legislative bill. She also emphasized that the scope of application of the antitrust regulation on online platforms should be determined based on criteria derived from economic analysis, and that the implementation inspection of self-regulatory policies in place is critical as it is about improving its effectiveness.
The various issues raised at the seminar will help provide guidelines for reasonable future regulation on online platforms.
The seminar featured two presentations—“Comparative Analysis of Antitrust Regulation of Online Platform ACT” and “Comparative Analysis of the Fairness in Online Platform Intermediary Transactions ACT”—and follow-up discussions by experts in the fields of law, economics, and business management.
In the first presentation, “Comparative Analysis of Antitrust Regulation of Online Platform ACT,” Lee Ho Young (Professor, Hanyang University School of Law) provided an analysis of online platform antitrust regulation bills proposed in the 22nd National Assembly and introduced specific details on the scope and the applicable standards of antitrust regulation acts in major regions such as the European Union, the United Kingdom, and Germany. He also discussed how to prescribe provisions on prohibited acts, legitimate grounds thereof, and how to satisfy the burden of proof. During his presentation, Professor Lee mentioned that in the case of adopting ex-ante regulation for online platform antitrust regulation, there is a need to define the purpose of regulation clearly and to fully examine whether ax-ante regulation can help the ACT to be executed effectively and promptly.
In the second presentation, “Comparative Analysis of the Fairness in Online Platform Intermediary Transactions ACT,” Yoo Young-guk (Professor, Peace and Liberal Arts College, Hanshin University) addressed online platform regulation trends proposed by the government and the National Assembly to date. He compared and analyzed the key provisions of the said bill proposed in the 22nd National Assembly, and suggested expectations and considerations for future legislation depending on how it is proposed. In terms of legal framework, Professor Yoo also raised concerns regarding the direction of online platform regulation (amendments to Fair Trade and Fair Transactions in Large Retail Business) recently announced by the Korea Fair Trade Commission.
In the panel discussion that followed, Lee Sang-kyu (Professor, Chung-Ang University School of Economics) explained the characteristics of online platforms, such as “indirect network externality, free services, and intermediary power,” and argued that it is necessary to discover policies that can promote competitiveness through economic analysis and come up with measures to implement them.
Seo Jung (Lawyer, Hannuri Law Firm) argued that current laws formulated on the traditional offline economic environment and market share cannot fully deal with various issues arising in the online platform economy, and suggested that there is a need to, at the least, first introduce ax-ante regulation in specific areas such as Internet OS, browsers, app markets, etc., where market dominance will continue for the time being.
Yoo Byung Joon (Professor, Seoul National University Graduate School of Business) emphasized that the government’s recent initiative to regulate online platforms (such as settling settlement dates) may hinder the innovation of startups and put more pressure on the small and medium-sized companies.
Park Seol-min (Deputy Director, Platform Fair Competition Policy Division of the Korea Fair Trade Commission) explained that online platform regulation to protect small and medium-sized businesses is necessary as a means to prevent the recurrence of various social problems related to online platforms, and that the measures proposed by the government should not put pressure on platform operators. He also mentioned that the sales threshold to be determined as “dominant platforms” may be lowered from 4 trillion won to 3 trillion won in the recent amendment to the Fair Trade Act by the Korea Fair Trade Commission, taking into account concerns such as the regulatory burden on startups.
Choi Eun-jin (Legislative Research Officer, NARS) said that before having a legislative discussion on online platform regulation, it is necessary to first review the limitations of the Fair Trade Act when applying the act to the issues arising in the online platform market, and then set the aim and direction of a new legislative bill. She also emphasized that the scope of application of the antitrust regulation on online platforms should be determined based on criteria derived from economic analysis, and that the implementation inspection of self-regulatory policies in place is critical as it is about improving its effectiveness.
The various issues raised at the seminar will help provide guidelines for reasonable future regulation on online platforms.
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