The Korea Communications Commission (KCC) has launched an on-site inspection regarding the controversy over Naver's manipulation of its news search algorithm. If any legal violations are confirmed, Naver could face fines of up to 3% of its news revenue.
On the 2nd, the KCC announced that it will conduct an on-site inspection to determine whether there have been any violations of the Telecommunications Business Act, including prohibited acts related to suspicions of artificial intervention in Naver's news search algorithm.
Naver has been criticized for artificially applying media popularity indicators through the review committee it formed and operates for its AI-based portal news algorithm, which exposes and recommends news according to users' consumption patterns, resulting in certain media outlets being either highlighted or disadvantaged.
Article 50 (Prohibited Acts) of the Telecommunications Business Act and Article 42 of its Enforcement Decree prohibit imposing unreasonable or discriminatory conditions or restrictions unfairly on those who provide other services using telecommunications services. The KCC plans to examine whether these regulations have been violated.
The KCC intends to convert the on-site inspection into a fact-finding investigation if any violations are recognized. If violations are confirmed, the commission plans to impose fines of up to 3% of the related service's annual average revenue and take measures such as criminal prosecution in accordance with relevant laws.
The KCC stated that it will use this incident as an opportunity to strictly punish illegal acts by value-added telecommunications service providers, such as portals, that distort the media market in the future.
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