Trump's tariff threat... Platform 'regulatory caution' rapidly rising [IT Spotlight]

As US President Donald Trump announced that he would respond with tariffs to foreign governments that regulate their own Big Tech (large IT companies) such as Google and Meta (formerly Facebook), the platform regulation policy that the Korean government and National Assembly have been pursuing is also expected to take a hit. There is a growing opinion that "regulatory prudence" is necessary, arguing that pushing forward with regulatory legislation too aggressively will only end up holding back Korean companies.



US President Donald Trump signs an executive order in the Oval Office of the White House in Washington, D.C. on February 25 (local time). 2025.2.



26 [Photo = Reuters/Yonhap News] On February 26, Jeon Seong-min, a professor of business administration at Gachon University, raised the "regulatory prudence" argument in a phone call with iNews24, saying, "Rather than attempting to regulate platforms too aggressively, we should keep a close eye on global trends and respond accordingly."



Professor Jeon added, "There is an increasing tendency to view platforms as a type of social infrastructure and national strategic asset rather than simply recognizing them as a single business operator."



Currently, the National Assembly has proposed a bill to regulate platform monopolies, such as the Fair Trade Act Amendment (Act on Monopoly Regulation and Fair Trade).



The bill aims to effectively respond to the monopoly evils of the platform market by prohibiting four types of anti-competitive practices, such as preferential treatment for one's own company and bundling, in six service areas, including search engines and social networking services (SNS). Rather than enacting a separate law to regulate "big tech," the plan is to revise existing laws and push for it.



In this year's business report on the necessity of platform regulation, the Fair Trade Commission mentioned "activating fair competition in the platform market" and stated, "We will actively participate in National Assembly discussions to promote legislation to quickly block the four major anti-competitive practices of large monopoly platforms in six service areas, including brokerage and search."



However, the situation has become complicated as US President Trump has expressed his intention to respond to regulations on American big tech companies with tariffs. There are also concerns that excessive regulatory legislation could end up being a mistake that will only hinder domestic companies amid fierce competition around the world for artificial intelligence (AI) hegemony.



An industry insider expressed concern, saying, "Looking back at past cases, overseas business regulations have raised questions about the effectiveness of enforcement due to the gap in timing from the start of related procedures." He continued, "In the AI ​​era, competition is fierce, but (due to regulations) it may not be limited to platforms and attempts at services that incorporate AI technology may be discouraged, and it may affect not only AI but all industries as it becomes subject to tariffs by the Trump administration in the U.S.."



Professor Lee Hwang of Korea University Law School said, "Considering the Trump administration's actions so far, the argument that (due to regulations) domestic companies will be focused on 'reverse discrimination' seems reasonable," adding, "We must make decisions in a direction that helps the national interest as much as possible, and given the high level of uncertainty in the domestic and international environments, we need to make our position (on regulations, etc.) clearer."





https://www.inews24.com/view/blogger/1818150

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