FTC plans to hold belated meeting with US Chamber over contentious bill

Fair Trade Commission Chairman Han Ki-jeong speaks on the antitrust watchdog's plans to introduce the Platform Fair Competition Act during a briefing at Government Complex Sejong in this December 2023 file photo. Yonhap

The Fair Trade Commission (FTC) announced that it will soon convene a teleconference with the U.S. Chamber of Commerce to hear the opinions of American companies regarding Korea's proposed plans to regulate market-dominant online platforms, the commission said, Tuesday.

The FTC decided to hold a teleconference with the U.S. Chamber of Commerce after realizing the distinction between the U.S. Chamber and the American Chamber of Commerce in Korea (AMCHAM). The former mainly advocates U.S. companies across the country, while the latter represents those doing business in Korea. Although the two organizations have sometimes cooperated with each other to defend American companies in Korea, AMCHAM is not affiliated with the U.S. Chamber of Commerce.

Previously, the commission had only met with AMCHAM officials to discuss the proposed Platform Fair Competition Act, which aims to prohibit unfair practices by monopolistic online and mobile platforms by designating certain companies as "influential players." As concerns from U.S. firms grew regarding this act, the FTC sought to hear the opinions of the broader U.S. business community represented by the U.S. Chamber of Commerce.

“We plan to meet the U.S. Chamber, although it remains unclear when we will hold the meeting,” said an official at the FTC’s digital economy policy division, which is in charge of handling platform regulations.

Charles Freeman, senior vice president for Asia at the U.S. Chamber of Commerce, speaks during a press conference with Korean reporters in Washington, D.C., in this 2022 file photo. Courtesy of Korea Trade-Investment Promotion Agency

Last month, when the U.S. Chamber issued a statement criticizing Korea's planned regulations as unfair, the FTC failed to distinguish between the U.S. Chamber and AMCHAM in its press release. The regulator responded to criticism by emphasizing its past and upcoming meetings with AMCHAM, defending its efforts to engage with the American business community in Korea.

After being informed by The Korea Times about the distinction between the U.S. Chamber and AMCHAM and asked whether the commission had communicated with the U.S. Chamber regarding the platform law, the antitrust watchdog corrected its press release.

American Chamber of Commerce in Korea (AMCHAM) Chairman James Kim, second from left, and AMCHAM Foundation Chairman Jeffrey Jones, left, listen to Fair Trade Commission (FTC) Secretary General Yook Sung-kwon, during their meeting at the AMCHAM head office in Seoul, Jan. 25. Courtesy of FTC

The FTC intends to meet with the U.S. Chamber following the lobby group's call for transparency and open dialogue regarding the issue. However, this communication is viewed as belated, as the FTC had already indicated its intention last week to reconsider the legislation of the controversial act from scratch.

The watchdog indefinitely postponed the disclosure of a detailed government plan, which was initially expected to be announced this month before the Lunar New Year.

Amid escalating protests from U.S. companies and domestic IT industry officials, the FTC announced that it will continue to review whether there are any alternative policies to pre-designating influential market players.

“We will take more time to listen to the opinions of experts and academics, rather than (hastily) sharing details of the act,” FTC Vice Chairman Cho Hong-sun told reporters, adding that the commission will not scrap its plan.

The antitrust agency is also reportedly struggling to persuade lawmakers from both the ruling and opposition parties to propose bills to enact the platform laws. Earlier this month, the National Assembly Research Service released a report stating that the pre-designation policy could stigmatize market-dominant players, irrespective of whether they have violated laws.

“Questions also remain whether the FTC will be able to impose the same regulations on foreign platforms, without discriminating against Korean companies,” the think tank said.

Given the criticism both domestically and internationally, it is anticipated to take some time for the platform act to come into effect.

Earlier this year, the Center for Strategic & International Studies said in a report that Korea’s proposed platform regulations unfairly target U.S. companies which will, in turn, end up helping Chinese rivals gain a larger market share.

Last December, Robert O’Brien, former national security adviser for former U.S. President Donald Trump, claimed that Korea’s proposed regulations to prevent unfair market activities by major online platform businesses would be a “gift” to China, warning they could cause friction with the U.S. if enacted.