U.S. lawmaker proposes bill to punish Korean entities if U.S. tech companies hurt by tighter rules

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U.S. lawmaker proposes bill to punish Korean entities if U.S. tech companies hurt by tighter rules

Published: 30 Sep. 2024, 16:44

SHIN HA-NEE
shin.hanee@joongang.co.kr

U.S. Congresswoman Carol Miller speaks during a subcommittee meeting on Capitol Hill in Washington on Feb. 5, 2020. [AP/YONHAP]

A U.S. lawmaker put forward a bill to the House of Representatives that would implement restrictive measures on Korean entities if Korea’s proposed tightening of fair trade rules negatively impacts U.S. tech companies.

The bill, sponsored by Republican Congresswoman Carol Miller of West Virginia, was referred to a House committee on Friday under the title “U.S.-Republic of Korea Digital Trade Enforcement Act.”

The move came as the Korean Fair Trade Commission (FTC) announced its plan to bolster antitrust regulations on major online platforms on Sept. 9.

The FTC aims to ban certain anticompetitive practices, such as preferential treatment of a platform’s own companies and tie-in sales, with harsher penalties and a stronger burden of proof by revising the Monopoly Regulation and Fair Trade Act. The proposed revision is expected to impact major online companies both at home and abroad, including Naver, Kakao, Google and Apple.

The updated plan by the FTC marked a shift from its previous proposal to enact a new law dubbed the Platform Competition Promotion Act (PCPA).

As such, Rep. Miller's pending bill aims to authorize the U.S. Trade Representative to take action when Korea passes the PCPA or any other related regulations.

The goal is “to protect American digital trade overseas and ensure that the Korean government does not overstep the bounds of our U.S.-Korea Free Trade Agreement,” said Rep. Miller in a release issued Friday.

“The Republic of Korea is an important economic and security partner of ours, but we cannot stand by and let U.S. digital companies be targeted by their laws,” said Miller. “The PCPA would benefit Chinese companies, put our national security at risk and negatively impact our economy.”

If written into law, the bill would require U.S. trade authorities to report to Congress on the impact of Korea’s bolstered antitrust rules on U.S. companies and implement restrictive actions against Korea to protect U.S. trade.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]