In a recent press conference, Minister of Science and ICT Lee Jong-ho disclosed the government’s intention to introduce the Platform Competition Law, aiming to tackle the monopoly wielded by major digital platforms.
As discussions around the proposed Platform Competition Law gained momentum, Minister Lee Jong-ho articulated the government’s stance on the necessity of regulatory measures, particularly in cases where monopolistic practices have the potential to inflict harm.
This move is a part of the Korea Fair Trade Commission’s promotion of the ‘Platform Competition Promotion Act,’ as the government seeks to create a balanced and competitive landscape within the digital platform sector.
While Minister Lee Jong-ho has not outlined specific measures, he acknowledged the considerations in formulating the Platform Competition Law. Factors such as policy direction, industry ecosystem dynamics, and international relationships with digital platform companies are among the key elements being considered.
Collaborative discussions between the Fair Trade Commission and relevant ministries are ongoing to craft comprehensive regulations addressing the monopolistic practices of major digital platforms. Upon the conclusion of these deliberations, the proposed Platform Competition Law will be presented to the Cabinet for further review.
Despite the government’s initiative, the proposed Platform Competition Law is encountering strong opposition from the domestic IT industry. The Digital Economy Confederation, representing various online platform organizations, has voiced concerns over the potential adverse effects of the legislation on Korea’s digital economy. Their contention lies in the perceived conflict with the current government’s policy of advocating self-regulation within the industry.
The Fair Trade Commission (FTC) had previously disclosed ongoing discussions with pertinent ministries regarding implementing the Platform Competition Law, including the Ministry of Economy and Finance and the Ministry of Science and ICT.
The law aims to address the monopolistic practices of major digital platform companies. Following the conclusion of these deliberations, the FTC will present the finalized contents of the proposed bill to the Cabinet for further examination and consideration.
Addressing concerns about budget cuts affecting projects under the Ministry of Science and ICT, Minister Lee assured that measures were underway to minimize the impact on researchers while enhancing the efficiency of budget allocations. Expressing satisfaction with the commitment to tackle wasteful elements and implement necessary reforms, Minister Lee highlighted ongoing efforts to ensure that budget constraints do not compromise the progress of crucial projects within the ministry.
Minister Lee also addressed the government’s decision to cut 2 trillion won ($1.54 billion) from the budget allocated for the 317 projects slated for promotion by the Ministry of Science and ICT in the upcoming year.
Presenting this move as a strategic effort to minimize budget inefficiencies, he assured that measures were in place to safeguard researchers from the adverse effects of these budget cuts.
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