Seoul: U.S. companies will be treated the same as domestic firms under South Korea's proposed regulations for online platforms, the country's antitrust watchdog said Thursday, in response to a recent inquiry from the U.S. House of Representatives. The Fair Trade Commission (FTC) confirmed that its formal response has been delivered to the U.S. House of Representatives Judiciary Committee.
According to Yonhap News Agency, "The current enforcement of the law, as well as future legislative discussions, will be conducted without discrimination between domestic and foreign companies, applying the same legal principles and standards to all," the FTC stated in a press release. The agency emphasized that the proposed bill is still under review and requires further parliamentary discussions, pledging to continue gathering input from stakeholders throughout the legislative process.
The U.S. House Judiciary Committee had previously sent a letter to the FTC, requesting a briefing on the current state of South Korea's competition policy, details of the proposed legislation on online platforms, and its potential impact on U.S. companies. This inquiry was in response to President Lee Jae Myung's campaign promise to prevent the abuse of market dominance by global online platform operators through new regulatory measures, such as limiting commission fees and banning unfair practices.
During the recently concluded tariff negotiations, the United States reportedly expressed concerns over a wide range of non-tariff measures implemented by Seoul, including the online platform regulations and an ongoing import ban on American beef from cattle aged 30 months or older. As part of a last-minute deal reached last week, the U.S. agreed to reduce its reciprocal tariff on South Korean imports from 25 percent to 15 percent. In return, South Korea committed to investing US$350 billion in the U.S.