FTC responds to 'On-platform Act concerns' from US House... "We will proceed without discriminating against foreign companies"

"Responding to enforcement and legislative discussions with the same principles and standards for domestic and foreign companies"

The government has officially conveyed its position to the United States House of Representatives regarding their concerns over the 'Online Platform Act (On-platform Act)' that "foreign companies will not be discriminated against."

The Fair Trade Commission announced on the 7th that it had sent a reply containing this stance to the US House Committee on the Judiciary, which had requested the FTC’s position regarding the promotion of the On-platform Act. The reply was prepared in consultation with relevant ministries such as the Ministry of Foreign Affairs.

In the reply, the FTC explained, "Not only in the enforcement of existing law, but also in future legislative discussions, we plan to respond according to the same legal principles and criteria, ensuring no discrimination between domestic and foreign companies." Additionally, "the platform law is a matter subject to further debate in the National Assembly, and during the legislative process, we will continue gathering stakeholder feedback and strengthen Korea–United States cooperation," it added.

Previously, on the 24th of last month (local time), the US House Judiciary Committee, under the name of Chairman Jim Jordan, sent a letter to Han Ki-jeong, Chairperson of the Fair Trade Commission, requesting an explanation of the details of the On-platform Act and its impact on US companies. The deadline for the reply was set at 10:00 a.m. on August 7 (local time). It is considered unusual for a foreign legislative body to directly request a legislative explanation from the Korean government.

The US House has argued that the On-platform Act models itself on the European Union (EU)’s representative digital regulatory law, the Digital Markets Act (DMA), and could serve as a discriminatory regulation targeting domestic companies such as Google, Apple, and Meta. Some lawmakers pointed out, "Chinese companies are excluded from regulation, and only US companies are targeted."

The FTC stated, "We sent the reply within the requested deadline, and moving forward, will continue necessary communication with the US side."

This reply is interpreted as the government clarifying its intent to dispel concerns about discrimination against US companies, while not acceding to demands to halt the bill.

Meanwhile, the government and the ruling party are promoting the On-platform Act by splitting it into a 'Monopoly Regulation Act' and a 'Fairness Act.' The strategy is interpreted to be aimed at easing 'big tech regulation' concerns to which the US is highly sensitive by separating regulations on market dominance from general transaction fairness regulations. Related legislative discussions are expected to be postponed until after the South Korea–United States summit scheduled later this month.

Reporter Ji-eun Ha hazzys@hankyung.com