As the new government sets the policy stance for the platform market as self-regulation, it is noteworthy whether the regulation method for platform companies will shift from the enactment of the online platform bill to the self-regulation of the private-private council.
The government launched a public-private consultative body to coordinate stakeholders by launching a public-private consultative body after the 20th Presidential Transition Committee announced that it would prepare self-regulatory measures and the minimum necessary institutional devices for the digital platform market transaction order in the ‘110 National Tasks of the Yoon Seok-Yeol Government’. The plan is to create autonomous rules and standard contracts.
As the situation develops like this, discussions about enacting the online platform legislation, which had been discussed as a way to regulate digital platforms, remain at a standstill. In January of last year, the government proposed the enactment of the Act on the Fairness of Online Platform Brokerage Transactions (Onple Act), which requires disclosure of the order, form, and standards in which goods or services traded on online platforms are exposed. There has been no progress in the discussion due to confusion among the ministries.
Opinions are divided on the disclosure of algorithm standards, which is an issue in the enactment.
The Democratic Party has argued that the on-play law should be enacted to define platform operators and increase algorithmic transparency.
Fair Trade Commission, Korea Communications Commission, Ministry of Information and Communication
Go to each other’s ministries
Min Byung-deok (52, 34th Judicial Research and Training Institute), a lawmaker proposed by the Democratic Party of Korea in April last year, contained the content to disclose the method and order of product exposure and the standards for charging fees.
However, companies countered that trade secrets could be infringed. This is because operators may be required to disclose the fee-setting process if the Articles broadly specify the obligation to disclose algorithms.
A lawyer specializing in fair trade said, “Companies are reluctant to disclose the algorithm that determines the order of product exposure because it is directly related to the profits of platform companies.”
There are three related ministries in the business world
Risk of overlapping regulations
The public’s power also argues that the publicity of the algorithm is excessive.
The online platform basic law enacted by Representative Yoon Doo-hyeon of People’s Power in November last year stipulates obligations for search function, transparency of advertisements, review system, etc. stipulated
Regarding the enactment of the On-play Act, the competent department in charge of regulation has not been clearly arranged.
The Fair Trade Commission and the Korea Communications Commission each proposed enactments, claiming that they were the ministries responsible for regulating platform companies. In addition, the Ministry of Science, ICT and Future Planning also announced that it would be involved in promoting the platform industry. For this reason, there are concerns in the business world that there are three relevant ministries, which could lead to overlapping regulations.
the issue
Algorithm standard disclosure cheap and divided opinions
For this reason, experts predict that the new government will take precedence to self-regulation through a public-private consultative body rather than enacting the On-Play Act, which has been slow to reach an agreement between the issues at issue and the relevant ministries.
A lawyer said, “The On-Plat Act is not organized even by the relevant ministries, so it will not be easy for the majority party, the Democratic Party, to push and pass it.” It can be discussed from the beginning.”
Kwon Jae-yeol, a law school professor at Kyunghee University, said, “It feels like the Fair Trade Commission is also withdrawing from enacting the On-plat Act. “He said.
A lawyer who deals with fair trade cases said, “As the previous government did not agree with the bill itself and the competent ministries also expressed differences, the new government will take a different approach, such as creating a self-regulation through a public-private consultative body.” After a chairperson is appointed and a consultative body is formed, it is likely that a new rational regulation proposal will be discussed. First, we should pay attention to how the council will be structured.”
However, there are opinions that it remains to be seen whether the current government’s self-regulation principle can be realized in the female soya university phase.
Lee Soo-kyung (47, 36th class of Judicial Research and Training Institute) law firm Hwawoo said, “The current government, which has been based on minimum regulation, has implemented platform regulations in the direction of creating essential articles such as the existing Telecommunications Business Act, rather than enacting the On-Pl Act to regulate companies all at once. We can move forward,” he said.
