국가전략정보포털

Key Takeaways 1

Introduction 3

Policy Background 3

Policymakers’ Various Rationales for Platform Regulation 5
 Concerns That Digital Markets Are Different, and Therefore Need New Rules 5
 The Argument That Practices Unique to Platforms Are Unfair to Competitors 6
 The Concern That Small Firms Should Be Protected 13
 The Urge to Protect Competitors Instead of Consumers 14

Overall Problems With South Korean Digital Platform Laws 15
 The Proposed Reforms Will Harm Consumers 15
 The Proposed Reforms Will Chill Innovation 15
 The Proposed Reforms Can Lead to Regulatory Capture 16
 The Proposed Reforms Can Favor China 16
 Regulations Can Have Negative Effects on U.S.-South Korean Relations 18

Recommendations for a Pro-innovation formula 19
 Do Not Adopt DMA-Style Rules (Neither Ex Ante nor Ex Post) 19
 Use Existing Laws to Solve Antitrust Cases and Use Other Sectoral Laws to Handle Noncompetition Issues 19
 Amend Existing Laws—But Not in the Way Proposed 19

Conclusion 20

Appendix: Main South Korean Digital Competition Proposals 21

Endnotes 22