Washington – The Computer & Communications Industry Association is encouraged that the Korea Fair Trade Commission (KFTC) last week recognized that ex-ante regulation of select digital service providers is not in the interest of a leading digital economy like Korea. However, bills proposing ex-ante regulation of digital platforms that would significantly harm the global export competitiveness of U.S. and Korean companies remain under consideration in the Korean National Assembly.
While ex-post competition regimes are generally conducive to better outcomes, the new, ex-post regulatory framework proposed by the KFTC retains problematic elements from the ex-ante proposals, such as a disproportionate targeting of U.S. companies and a narrow focus on online services that U.S. companies provide in Korea. We would encourage the Korean Government, the KCC and MSIT to consult with public- and private-sector stakeholders to assess the current regime before considering the introduction of any new framework.
The following can be attributed to CCIA President & CEO Matt Schruers:
“Should ex-ante regulatory legislation advance, it is likely to bring unforeseen consequences and aid Chinese competitors to gain a stronger foothold in the region. Moreover, the KFTC has newly proposed an ex-post regulatory bill that retains many of the counterproductive features of the ex-ante bill, including applying thresholds and definitions that have a disproportionately negative impact on U.S. companies.”
“We urge Korean policymakers and legislators to abandon both the ex-ante and ex-post proposals that would target U.S firms and exacerbate the risk of Chinese influence on the essential U.S.-Korean economic and security relationship. Both the ex-ante and ex-post regulatory proposals represent solutions in search of a problem, and are counterproductive in a digital economy powerhouse like Korea.”