SMEs and Small Business Owners Unite: "Online Platforms Threaten Our Livelihoods"

Press Conference Urging Fair Trade Act for Online Platforms on the 23rd
"Legislative Delay Leaves Entry Businesses in Regulatory Blind Spots, Increasing Damage"
"Online Giants Dominate Negotiations and Data... Controlling Local Markets"

[Asia Economy Reporter Kim Bo-kyung] Small and medium-sized enterprises (SMEs) and small business associations urged the National Assembly to promptly pass the 'Online Platform Fairness Act.' They criticized that despite the increase in unfair trade practices by platform operators, no support system has been established for tenant businesses.

The Korea Accommodation Industry Association, Korea Federation of Small and Medium Business, National Franchise Owners Association, Korea Federation of SMEs, People's Solidarity for Participatory Democracy, and other tenant business groups and civil society organizations held a press conference titled 'Urgent Call for the Passage of the Online Platform Fairness Act in the August Extraordinary Session' at the Korea Federation of SMEs in Yeouido, Seoul.

They stated, "Regulating unfair trade practices by online platform operators and establishing a fair and transparent trading order is the role and duty of the National Assembly," adding, "Delays in institutionalizing this legislation amount to neglecting their duty and allowing platform operators to engage in abusive practices."

They continued, "The longer the legislation is delayed, the more the damage to tenant businesses left in the blind spots of online platform regulation, which current laws fail to govern, will increase." They explained that recent issues have arisen such as unfair dispatch and commission practices by KakaoT, unfair terms by Coupang Item Winner, and algorithm manipulation on Naver Shopping.

They also pointed out, "The delay in legislation is reportedly due to a power struggle between the Fair Trade Commission and the Korea Communications Commission," emphasizing, "The government and the National Assembly must now unite their efforts for the enactment of the Online Platform Fairness Act, and the National Assembly should promptly agree on a schedule for bill review."

The Korea Federation of Small and Medium Business stated, "Leading online conglomerates in various sectors, spearheaded by Kakao, which has expanded beyond delivery and accommodation apps to driver-for-hire and hair salon reservations, are threatening the livelihoods of small business owners," raising their voices. "They use market monopolies and oligopolies as weapons to impose excessive commission rates on small business distributors and are further squeezing out offline market spaces."

The National Franchise Owners Association appealed, "Delivery apps have become an indispensable channel for delivery small business owners, placing them in a strong dependency relationship, leaving no room to exercise bargaining power over advertising fees, commissions, or customer information monopolization issues."

The Korea Federation of Small Merchants and Self-Employed Entrepreneurs diagnosed, "Platform companies are entering actual distribution based on business data, evolving from simple platforms to gradually dominating offline markets centered around platforms," adding, "Ultimately, both small merchants using platforms and self-employed entrepreneurs in local markets are being exploited and monopolized by the platforms."