Han Junho Proposes Platform Commission Abuse Prevention Act

Han Junho, Member of the Democratic Party of Korea

[Asia Economy Reporter Buaeri] Representative Han Junho of the Democratic Party of Korea on the 24th took the lead in proposing an amendment to the Telecommunications Business Act to prevent the abuse of power by monopoly platform companies.

The amendment mainly requires value-added telecommunications service providers, including app market operators, to obtain approval and report their service terms and conditions, reflecting essential items such as service fees, commissions, reasons and procedures for contract changes or termination, and standards for exchanges and refunds in the terms of service.

It also stipulates that a 'Terms of Service Review Committee' be established under the Ministry of Science and ICT to review the appropriateness of commissions and disclose this information to users.

According to Representative Han, the market structure dominated by a few entrenched monopoly platforms in sectors such as online video, advertising, e-commerce, content trading, and delivery brokerage services is leading to increased user fees.

'YouTube Premium' raised its price by 20%, and Kakao Mobility introduced a paid subscription plan costing 99,000 KRW per month that offers discriminatory dispatch benefits to taxi drivers. Netflix is also facing the possibility of raising its monthly subscription fees, currently between 9,500 and 14,500 KRW, following the end of its one-month free trial service.

Additionally, 'Coupang Eats' is under suspicion of notifying self-employed business owners of excessive delivery app commission increases and inducing them to pass these costs onto users. 'Baedal Minjok' has been embroiled in controversy for repeatedly abusing delivery workers by cutting commissions.

Representative Han said, "Through this amendment, we plan to establish a system to enhance the fairness and rationality of platform services and protect the legitimate interests of the public," adding, "I hope that legislative improvements addressing the harms caused by large platforms' fee and commission increases will become a tipping point in ICT policies that the public can truly feel."