The Fair Trade Commission strengthens the protection of small business owners and consumers who transact online. This is due to the recognition that the need to regulate online platform companies has increased as the scale of the digital and non-face-to-face economy has grown rapidly.
FTC announces work plan for 2021
Kim Jae-shin, vice chairman of the Fair Trade Commission, is announcing the work plan of the Fair Trade Commission for 2021 at the Government Complex Sejong on the 21st. Newsis
On the 21st, the FTC announced a work plan for 2021 containing these details. This year, the Fair Trade Commission cited the enactment of the’Online Platform Fairness Act’ as the biggest task. This is a law that prevents online platform operators such as Naver and Baedal’s Nation from being’cheopardized’ towards businesses that enter the store. The key is to make it mandatory to write a contract that states how much the fees must be paid to expose the information of the participating companies to the top level, and whether it is possible to enter the store on various platforms. The Korea Communications Commission has expressed its opposition, saying that there may be overlapping regulations when introducing the online platform law, but in the end, the government proposal made by the Fair Trade Commission is expected to go to the National Assembly’s judging table.
In line with the enactment of the Online Platform Act, the’E-Commerce Consumer Protection Act’ (E-Commerce Transaction Act) will be amended. In order to regulate platform operators by including transactions through the platform as subject to the E-Commerce Act, and to protect consumer choices, regulations will be introduced to ensure transparency in search results and rankings on the platform.
We also look into the process of collecting and using consumer personal information of companies that have recently been controversial through the artificial intelligence (AI) chatbot’Iruda’. While collecting consumer data, it is expected to conduct an analysis of the actual condition of profit infringement, such as forcing consent in effect or offering high prices while providing’individual customized information’. In addition, by revising the standard terms and conditions for e-commerce and online games, the obligation of business operators to protect personal information such as site usage history, customer preferences, and location information is strengthened.
The FTC decided to decide as soon as possible whether to approve mergers and acquisitions (M&As) on the screening table. The Fair Trade Commission said, “We will actively respond to M&A such as aviation, shipbuilding, machinery, etc., which are expected to undergo restructuring due to rapid industrial restructuring and global economic downturn, and broadcasting, telecommunications, and semiconductors, where active M&A is expected this year.” Currently, the FTC is examining the combination of Korean Air and Asiana Airlines, Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. FTC Vice Chairman Kim Jae-shin said, “We formed a dedicated team in the relevant department to begin the review,” he said. “However, it is difficult to provide a specific time limit for completing the review because in-depth economic analysis is required, such as requesting research services to academia.”
It also focuses on the role of the existing Fair Trade Commission, such as improving the relationship between Kabul. In particular, the franchise headquarters, which unreasonably passes losses caused by a decline in sales due to the prolonged coronavirus infection (Corona 19), to affiliates, and online shopping malls that pass losses due to the lowest price competition as advertising expenses to suppliers are strengthened. It is planning to intensively examine the status of subcontract payments in the auto parts, machinery, and clothing sector, where the damage from Corona 19 was relatively large, and in the construction sector, where there is a high concern about transferring costs related to industrial accidents.
The Fair Trade Commission announced that it is currently investigating unfair internal transactions occurring in large corporate groups in the catering and liquor industry. Vice-Chairman Kim Jae-shin said, “It is a time when it is necessary to quickly respond to new policy demands arising from areas that are struggling with Corona 19 and non-face-to-face transactions.” Said.
Sejong = Reporter Seongbin Lim [email protected]