Monitoring Subcommittee Reorganized into 'App Market, O2O Platform, Intellectual Property, Semiconductor' Divisions
ICT Task Force Launched in November 2019, Completed Investigation of 7 Cases Including 'Naver Real Estate'
Expansion of 'Expert Pool' by Subcommittee
[Sejong Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) has reorganized the ICT Task Force subcommittees to strengthen law enforcement in the platform sector. The platform subcommittee has been subdivided into app market and O2O (online-to-offline) platform subcommittees to focus on monitoring and sanctioning unfair practices in these areas.
On the 18th, the KFTC announced the 'ICT Task Force Reorganization Plan' containing these details.
A KFTC official stated, "The ICT Task Force subcommittees were reorganized to concentrate law enforcement capabilities on the 'platform' sector, which is gaining greater influence in the digital economy. Along with this, we will actively utilize the expertise of external expert groups during the operation of the ICT Task Force."
Previously, the KFTC launched the ICT Task Force in November 2019. Until now, it has operated four subcommittees covering platforms, mobile, intellectual property rights, and semiconductors. Through this, in September last year, the KFTC imposed corrective orders and fines (approximately 27.8 billion KRW) for acts such as preventing competitors from providing listing information related to Naver Real Estate, and in October for prioritizing its own services by adjusting search algorithms related to shopping and video. Additionally, the investigation into Google, which monopolizes the smartphone OS market based on the Android operating system (OS), was completed, and the matter was submitted to the commission in November of the same year.
Going forward, the ICT Task Force's platform subcommittee will be subdivided into app market and O2O platform subcommittees. The app market subcommittee plans to focus on monitoring acts such as ▲hindering the emergence of new mobile OSs, thereby restricting competition in related app market and other smart device markets ▲blocking multi-homing by preventing app developers from launching products or services on competing app markets ▲forcing the use of specific payment methods or related services.
The main monitoring targets of the O2O platform subcommittee include ▲forcing sales of products or services under the most favorable price or transaction conditions on their own platform ▲artificially adjusting exposure rankings on the platform or deceiving consumers through unclear advertising labels ▲unfair practices against platform workers such as delivery drivers.
The existing intellectual property rights and semiconductor subcommittees will continue to operate. Through these, the KFTC plans to focus on monitoring acts that restrict competition such as abuse of intellectual property rights that hinder new entrants and conditional rebate offerings in the semiconductor market.
In addition, the KFTC has decided to actively utilize the expertise of external expert groups during the operation of the ICT Task Force. Currently, an external expert pool in the ICT field related to economics, law, and specialized technology is formed to gather expert opinions throughout the case handling process. In the future, the expert pool will be expanded by subcommittee to strengthen ICT field expertise.
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