WASHINGTON, D.C. — The following is attributable to Charles Freeman, Senior Vice President for Asia at the U.S. Chamber of Commerce.
“The U.S. Chamber remains concerned with Korea’s approach to regulating digital platforms. In cooperation with lawmakers from the People Power Party, the Korea Fair Trade Commission (KFTC) has put forward a bill in the National Assembly that, if passed, would target certain companies, while leaving out other competitors, both those based in Korea and in third countries, including China.
“Further, the targeted companies would face a presumption that a series of common business practices are prohibited, while those same practices would be assumed to be permissible among their competitors. This raises due process concerns associated with the ability to overcome the presumption and the imposition of massive fines that would serve to chill beneficial practices as targeted companies will compete less vigorously to avoid being forced to justify every business decision before the regulator.
“This proposal would put the Korean government in a position of managing competition outcomes, rather than promoting competition in the market. Such government micromanagement of the economy will dull Korea’s growth and long-term competitiveness. It also could position Korea to run afoul of its international trade commitments.
“There are more than a dozen other legislative proposals for platform regulation that have been introduced in the National Assembly this year. Many of them share similarly troubling features. Korea remains a key ally and partner of the United States. During a time of political transition in the U.S. and guided by our shared commitment to economic growth, the Chamber remains dedicated to working with the U.S. and Korean governments to pursue policies that support bilateral economic security and the enduring strength of our trade and investment ties.”
