The possibility of dynamic innovation and various characteristics that are not easily witnessed in the traditional market are occurring in the digital market and the online platform ecosystem allow a small number of online platform operators to concen...
The possibility of dynamic innovation and various characteristics that are not easily witnessed in the traditional market are occurring in the digital market and the online platform ecosystem allow a small number of online platform operators to concentrate their influence in the market, which in turn brings greater benefits to the user group, creating a cycle that allows even greater concentration. While this may provide other potential innovations and consumer benefits, there are concerns on the other hand that it may limit the emergence of new competitors, thereby removing competitive pressure beforehand, and consequently promoting the long-term monopoly of a small number of operators, resulting in anti-competitive effects in the relevant market. These discussions have been very active both domestically and internationally over the past decade and are leading to actual legislation of laws or enactment of guidelines related to practical regulatory systems for online platforms by major authorities.
In line with this trend, in January 2022, the Fair Trade Commission of Korea has announced and issued a draft of 「Examination Guidelines for Abuse of Dominant Market Position and Unfair Transactions by Online Platform Operators」to regulate abuse of market dominance and unfair trade by online platform operators. In this regard, seminars and discussions were held in academia and the National Assembly, discussions were held with policy councils and related ministries, and opinions of other stakeholders were collected. And on January 12, 2023, 「Examination Guidelines for Abuse of Market Dominant Position by Online Platform Operators」came into effect.
The implementation and application of this guideline and the resulting regulatory effect or competition order in the market are expected to act as a very important part of online platform regulation and related legislative procedures of Korea for next few years. Therefore, in the process of enforcing this guideline, thorough and close studies whether the direction of regulation we are currently moving in is suitable for maximally protecting competition in the digital market and online platform ecosystem, and whether various related laws and regulations being discussed in rapid succession are not overlapping or excessive shall be necessary.