The Computer & Communications Industry Association (CCIA) in the United States has expressed its opposition to the new Platform Competition Promotion Act being pushed by the Korean Fair Trade Commission (KFTC) and the opposition lawmakers in South Korea. They argue that both proposals, whether they identify specific companies for regulation in advance or not, would stifle U.S. and Korean platform companies while only benefiting Chinese competitors.
In a statement issued by CCIA President Matthew Schruers, the organization praised the KFTC for acknowledging that pre-regulatory measures targeting certain digital service providers do not align with the interests of a leading digital economy like Korea’s. However, Schruers pointed out that the proposed pre-regulatory legislation for digital platforms could severely harm the global export competitiveness of both U.S. and Korean firms.
The CCIA noted that regulations enforced after violations are typically more effective. Still, the new ex-post regulatory framework unfairly targets U.S. companies and continues to carry over problematic elements from the existing pre-regulation.
In response, the CCIA recommended that the South Korean government, the Korea Communications Commission, and the Ministry of Science and Technology consult with public and private stakeholders to evaluate the current system before introducing a new framework.
Schruers warned that advancing these pre-regulatory measures could lead to unintended consequences and further entrench the positions of Chinese competitors in the Korean market. He also criticized the Fair Trade Commission’s new post-regulatory proposal, arguing that it retains many ineffective elements from previous laws and imposes standards that disproportionately harm U.S. companies.
He urged South Korean policymakers and legislators to reconsider both regulatory strategies, emphasizing that these laws could deepen Chinese influence and strain the economic security relationship between the U.S. and South Korea.
The CCIA, representing major tech firms like Google, Meta, and Apple, is an international nonprofit industry association that advocates for open markets, systems, and networks. It has championed these causes for over 50 years.
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