Antitrust watchdog mulling inclusion of music streaming sites under platform regulation

Industry

Published: 07 Mar. 2024, 17:31 Updated: 07 Mar. 2024, 19:15

Antitrust watchdog mulling inclusion of music streaming sites under platform regulation

The Fair Trade Commission (FTC) Chairman Han Ki-jeong speaks during an event hosted by the American Chamber of Commerce in Korea (Amcham) at the Grand Hyatt Hotel Seoul in central Seoul on Thursday. The event highlighted key policies that the FTC will promote in 2024. [YONHAP]

Korea’s antitrust regulator is considering making music streaming sites subject to its upcoming antitrust regulation, the head of the agency said during an event hosted by the American Chamber of Commerce in Korea (Amcham).

The Fair Trade Commission (FTC) announced in December that it would introduce a new bill dubbed the “Platform Competition Promotion Act.” The bill aims to categorize large-scale platform operators as dominant players and impose strict rules and heavy penalties for monopolistic behavior.

Industry insiders speculate that big Korean tech companies such as Naver, Kakao and Coupang, as well as global platform operators Google, Meta and Apple, will be subject to the act.

However, FTC Chairman Han Ki-jeong said the regulator is "considering" including music streaming services, too.

"The FTC is eyeing music streaming services to be included in this bill, as such platforms have infiltrated deep into people’s lives," Han said at the event held at the Grand Hyatt Seoul in central Seoul on Thursday. The event aimed to offer a road map into policies that the FTC plans to promote this year.

The platform act aims to prevent monopolization and protect the rights of small- and medium-sized enterprises (SMEs) and consumers.

However, it met with an intense backlash from Korean and foreign industry insiders, leading the FTC to backtrack and tentatively defer the bill.

At the event, FTC Chairman Han Ki-jeong stressed the bill's importance as the influence of platform operators expands, arguing that the current Fair Trade Act is "not enough" to regulate them.

“People’s daily lives are being reshuffled to revolve around platforms,” Han said. “Such market monopolization by dominant platforms can damage consumers and SMEs that use their services. Social demand to reinforce monitoring of platform operators is growing, which is why the FTC will focus on anti-competitive practices such as platforms prohibiting other competitors from entering the market or hindering others’ business practices."

However, when media outlets pressed Han to give a specific timeline for the bill, he declined to comment.

“This is not the place or situation to discuss specific details,” Han said. “We will actively seek voices from the industry.”

U.S. Big Tech companies such as Apple, Meta and Google did not attend Thursday’s event.

This is their second consecutive absence since January, when the FTC held a closed-door meeting with global tech companies at AmCham’s office in Western Seoul to clarify the bill's standards.

Amcham Korea Chairman James Kim asked antitrust authorities to review the bill thoroughly with related companies before enacting it.

“Our survey shows that an unpredictable regulatory landscape is a primary concern for the Amcham business community,” Kim said, referring to Amcham’s annual business survey. “In this regard, it is crucial for the Korean government, including the FTC, to take sufficient time to consult thoroughly with the industry before introducing any new legislation, including the online platform act.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]