Meta fined 30.8 billion won... Vice President O'Connell visits National Assembly following KCC visit

Meeting with Rep. Kim Young-sik Following Vice Chairman Ahn Hyung-hwan of KCC
Discussion on Collaboration to Revitalize the Metaverse Ecosystem
Surface Reason Focused on Metaverse Business
Underlying Motive Seen as Response to Personal Information Protection Commission

Andy O'Connell, Vice President of Product Policy and Strategy at Meta Platforms (formerly Facebook), which was fined over 30 billion KRW by the Personal Information Protection Commission for inadequate user protection, visited the National Assembly following the Korea Communications Commission. The photo shows Vice President O'Connell (left) and Kim Young-sik, a member of the People Power Party, posing for a commemorative photo after their meeting. Photo by Kim Young-sik's Office

[Asia Economy Reporter Cha Min-young] Andy O'Connell, Vice President of Product Policy and Strategy at Meta Platforms (formerly Facebook), which was fined over 30 billion KRW by the Personal Information Protection Commission (PIPC) for inadequate user protection, visited the National Assembly following his visit to the Korea Communications Commission. While Meta has expressed a sense of injustice regarding the PIPC's decision to the extent of considering administrative litigation, O'Connell did not mention this issue at all during his visit to Korea. Instead, he emphasized cooperation with Korean companies to revitalize the metaverse ecosystem, drawing attention.

According to the ICT industry and the National Assembly on the 21st, O'Connell, Vice President of Meta, which operates Facebook, Instagram, WhatsApp, and Oculus, visited the office of Kim Young-sik, a member of the People Power Party on the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee, on the afternoon of the 20th for a meeting. Meg Chang, Meta Asia-Pacific Content Regulation Policy Manager, and Heo Wook, Vice President of External Policy at Meta Korea, also attended the meeting.

The discussion focused on cooperation plans between Korea and Meta to revitalize the metaverse ecosystem. O'Connell said, "The metaverse ecosystem has no borders, so it is unclear which country's laws apply, making cooperation with multiple countries important," adding, "We will continue collaboration to revitalize the metaverse ecosystem with Korea through the Meta-Seoul National University XR Hub Korea and the Metaverse Academy."

He further emphasized, "The revitalization of the metaverse ecosystem cannot be done by Meta alone, so global cooperation is essential," and added, "Meta is autonomously creating policies on various topics such as security, safety, privacy, and inclusion within the metaverse." He also expressed support for the Korean government's and ruling party's self-regulation efforts.

Meta's Vice President O'Connell is taking a commemorative photo after meeting with Ahn Hyung-hwan, Vice Chairman of the Korea Communications Commission, on the 19th.

On the surface, O'Connell's visit to Korea focused on cooperation with the government to revitalize the metaverse ecosystem. On the previous day, the 19th, Meta also had a meeting with Ahn Hyung-hwan, Vice Chairman of the Korea Communications Commission, where they explained in detail their efforts to address user protection concerns arising from metaverse ecosystem activation and their future preparation plans. These include operating educational programs related to metaverse content development in Korea and establishing a code of safe conduct to encourage responsibility among metaverse ecosystem participants.

Meta's global position, which shifted its core focus from social networking services (SNS) to the metaverse, is narrowing. On the 16th (local time), Meta closed at $146.29 (approximately 203,300 KRW), marking its lowest price since March 2020, when the COVID-19 pandemic began spreading. Meta's stock price has plummeted about 61% compared to a year ago. Its market capitalization, which exceeded $1 trillion (approximately 1,393 trillion KRW) at the end of last year, has now halved to $393.1 billion.

There are still no visible results in new businesses such as the metaverse or cryptocurrency, in which Meta is investing huge amounts. Reality Labs, created last year with a $10 billion investment for metaverse development, recorded revenue of only $452 million in the second quarter. This is expected to decline further in the third quarter. Even the cash cow SNS has stopped growing. According to market research firm Statista, Facebook's global monthly active users (MAU) in the second quarter of this year were 2.934 billion, down about 2 million from the previous quarter.

In this situation, Meta was hit with a fine of 30.8 billion KRW by the PIPC in Korea for violating the Personal Information Protection Act. The PIPC held its 15th plenary meeting on the 14th and passed this resolution. It also issued a corrective order requiring Meta to notify users clearly and obtain their consent so that users can easily and clearly recognize and freely exercise their decision rights when collecting and using behavioral information from other companies. After the PIPC's decision, Meta stated, "We cannot agree with this decision and will thoroughly review the matter while keeping all possibilities open, including judicial review," hinting at the possibility of administrative litigation. Previously, in 2020, when it was still Facebook, Meta was fined 6.7 billion KRW for transferring personal information of at least 3.3 million people in Korea to other businesses without consent over six years.

Although the official schedule during O'Connell's visit to Korea, which began on the 16th, did not include a meeting with the PIPC, some speculate that the visit also involved preparations for the government's fine measures. A source from the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee said, "On the surface, Meta emphasized the metaverse ecosystem, but it could not have ignored the PIPC issue completely." A Meta Korea official said, "This visit was not related to that issue," adding, "There is no plan for an official meeting with the PIPC."