Naver News Algorithm Inspection Finds Potential Legal Violations
Fact-Finding Investigation from the 25th
Possible Fine of 1% of Related Sales
The government is launching an on-site investigation into whether Naver (NAVER) artificially intervened in its news search service. If any legal violations are confirmed, strict measures will be taken, including imposing fines up to 1% of the related revenue and filing criminal charges.
Lee Dong-kwan, Chairman of the Korea Communications Commission, is holding a meeting with representatives of the three major mobile carriers on the 15th at the Korea Communications Commission in the Government Complex Gwacheon, Gwacheon-si, Gyeonggi-do, to share the Commission's user protection and fair competition policies and to listen to the telecommunications industry's opinions on key issues.
The Korea Communications Commission (KCC) announced that it will begin a fact-finding investigation from the 25th to verify violations of prohibited acts under the Telecommunications Business Act related to Naver’s news service.
Earlier, since July, the KCC has been conducting an on-site inspection to determine whether Naver’s news service violated the prohibited acts under the Telecommunications Business Act.
The inspection results suggested that Naver may have violated the prohibited acts by ▲unfair discrimination against specific users ▲imposing unreasonable conditions or restrictions ▲failure to notify important matters.
Accordingly, the KCC has initiated a fact-finding investigation, including an on-site inspection of Naver.
Naver holds a monopolistic market dominance with a 66.7% share in news, which has continuously raised social responsibility and fairness concerns. In particular, the news algorithm is directly linked to issues of media outlet article arrangement involvement and has been pointed out as a cause of bias toward certain media companies.
If Naver News Service artificially intervened in search results or provided discriminatory services to media outlets, this would constitute a violation of prohibited acts under the Telecommunications Business Act.
The KCC plans to clarify the legality of Naver News Service through this fact-finding investigation. If violations are confirmed, strict and decisive actions will be taken according to the law, including imposing maximum fines (1% of related revenue) and criminal prosecution.
A KCC official stated, "While actively pursuing deregulation to strengthen the competitiveness of the broadcasting and telecommunications industry, we will ensure users’ rights and create a fair media environment through strict law enforcement against illegal activities."
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