The Korea Fair Trade Commission (KFTC) is reassessing its position on the Platform Competition Promotion Act (PCPA), a proposed law designed to curb unfair practices by major digital platforms. The bill has faced resistance from Washington, raising concerns over potential trade frictions.
“We will strengthen communication with the U.S. and coordinate with the National Assembly to ensure that changes in the trade environment are fully considered during the legislative process,” KFTC Chairman Han Ki-jeong said Monday at the Government Complex in Sejong.
The proposed legislation seeks to shift the burden of proof onto platform operators in cases involving four types of violations, including self-preferencing and tied selling. It would also increase potential fines from 6 percent to 8 percent of revenue for noncompliance.
Momentum for the regulatory push grew after the Tmon-WeMakePrice crisis in July, which underscored the need for stronger oversight of online platforms and galvanized public support for intervention.
However, the initiative has faced stiff opposition from U.S. officials, particularly following comments by U.S. Trade Representative nominee Jamison Greer. On Feb. 6, Greer denounced the measure as “intolerable,” arguing that it discriminates against American companies.
If enacted, the law would apply to platforms with market shares exceeding 60 percent and user bases of more than 10 million — a threshold that would encompass U.S. tech giants such as Google and Apple.
Google is already under scrutiny by the KFTC over allegations of bundling its YouTube Music service with other offerings, though a final decision on the case has yet to be made.
Facing mounting pressure, South Korean lawmakers are seeking to salvage the bill by emphasizing similar regulatory efforts underway in the United States. The issue is expected to be a focal point in an upcoming meeting of the National Assembly’s Policy Committee.
“Even in the U.S., there is growing support for regulating big tech companies like Google and Apple to create more opportunities for new technology firms,” said Kim Nam-keun, a lawmaker from the opposition Democratic Party.
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