The government supports the creation of a private-led self-regulatory body
The legislative power of the on-play law promoted by the Wen government is expected to decline
▲ Fair Trade Commission. Seoul Newspaper DB
For large online platform companies, the government is planning to restrict monopoly and unfair trade with self-regulation instead of legal regulation. Accordingly, the legislative power of the ‘Act on the Fairness of Online Platform Brokerage Transactions’ (Online Act) promoted by the Moon Jae-in government to regulate platform companies is expected to decline.
The Ministry of Strategy and Finance, the Ministry of Science and ICT, the Fair Trade Commission, and the Korea Communications Commission will create a privately-led self-regulatory body in the first half of this year, and the government has agreed to support the organization. It is a plan that organizations in which stakeholders, such as platform companies and small business owners, participate, create autonomous rules and model contracts, sign win-win agreements, and allow dispute resolution to take place autonomously.
However, in a situation where large online platform companies already occupy a dominant position in the market, questions are raised as to whether self-regulation alone can prevent damage to small business owners and ensure fairness in the market.
On the 25th of last month, about 10 civic and social groups, including the Solidarity for Participation, launched the ‘National Network for Fairness of Online Platforms’ and urged the enactment of the ONPL Act. Attorney Nam-geun Kim, who served as the chairman of Onplaynet’s policy committee, said, “Unlike the speedy discussion of platform monopoly regulation in the US and the European Union, the new government’s lax self-regulatory stance is concerned about damage, so a joint response from civil society is necessary.” .
Previously, the Moon Jae-in government introduced the On-play Act to the National Assembly in January last year. The ONPL Act requires platform operators to issue a brokerage transaction contract that contains information on product exposure order and contract changes/cancellation to vendors, and imposes a fine if violated.
However, discussions on the On-play Act in the National Assembly have been stagnant for over a year, and some observe that the On-play Act may be scrapped as the Yoon Seok-yeol administration emphasizes self-regulation. The Fair Trade Commission, which initiated the On-play Act, also took a step back after the Yoon Seok-yeol government took office, saying that the On-play Act should be discussed in the National Assembly.
A government official said, “The Fair Trade Commission plans to self-regulate and explain the status and performance of self-regulation to the National Assembly for reference in discussions.
Reporter Sejong Park Ki-seok
