According to Yonhap News Agency on December 26, in order to improve the competitive vitality of the platform market and protect the rights and interests of small and medium-sized enterprises and consumers, the Korea Fair Trade Commission is promoting the introduction of the Platform Fair Competition Promotion Act (Platform Law). Similar to the EU's Digital Markets Act (DMA), the Platform Law designates and supervises dominant companies with a monopoly position in advance, reduces the time to enter the sanctions process by identifying the dominant enterprises and the main prohibited acts in advance, and restores market competition through prompt sanctions. However, there are differences between the two in terms of the subject of restrictions, the terms of obligations, the strength of sanctions and other details.
First of all, the DMA designates non-EU companies such as Google, Meta, and Apple, while the Korean Platform Act designates domestic companies such as Kakao and N**er, so the DMA has the nature of protecting domestic companies. Second, the DMA sets an obligation clause for the designated dominant enterprise, while the Platform Law does not stipulate the obligation clause for the dominant enterprise. Finally, there are differences in the intensity of sanctions. The DMA stipulates that a fine of up to 10% of the previous year's global sales may be imposed on dominant companies that violate their obligations, and the limit can be increased to 20% if it is repeated. However, it is difficult for the Platform Law to impose high fines, and the existing Fair Trade Law will be applied for sanctions.
*: Yonhap News Agency.