Fair Trade Commission Tightens Surveillance on Big Tech Platforms

[Asia Economy Reporter Eunju Lee] The Fair Trade Commission's monitoring of big tech platforms is being strengthened. As a conclusion on Kakao Mobility's 'call bundling' is expected soon, discussions have taken the first step toward the necessity of new legislation to curb the monopolistic power of big tech platforms.

According to related government departments on the 24th, the Fair Trade Commission is expected to hold a plenary meeting in February to decide whether to impose sanctions and the severity of the charges related to Kakao Mobility's taxi call bundling allegations. However, the schedule of the plenary meeting is likely to change as the respondent side can submit opinions on the matter.

The issue arose in 2020 when a taxi operators' association reported Kakao Mobility's 'call bundling' practices. If the Fair Trade Commission's plenary meeting is held next month, it will conclude about three years after the report was filed. The Commission believes that Kakao Mobility manipulated its platform algorithm to favor its own business.

Last week, the Fair Trade Commission officially launched a task force (TF) to discuss the necessity of new legislation to curb the monopolistic power of big tech platforms. The TF consists of about 15 experts in economics and law. The discussions within the TF are expected to focus on whether new legislation beyond the current Fair Trade Act is needed to restrain the abuse of monopolistic power by big tech platforms.

Chairman Han Ki-jung of the Fair Trade Commission plans to gather opinions on whether to pursue new legislation following the TF discussions. Earlier, Chairman Han stated in media interviews and New Year's addresses, "We will review with internal and external experts whether the current legal regulations are sufficient to resolve monopolies emerging in new markets such as online platforms."