Legislation aimed at curbing the monopolistic behavior of big tech companies and unfair practices against small businesses—known as the “Online Platform Act” (Onple Law)—is once again stalled, apparently under pressure from the United States. Even a watered-down version that excludes monopoly regulation and only focuses on unfair trade practices is facing prolonged deadlock due to the U.S.’s sweeping pressure backed by tariff threats.
As of the 27th, the Onple Law—a key campaign pledge of President Lee Jae-myung—is drifting amid what officials are calling a “three-front wave” from the U.S. business sector, Congress, and administration.
Opposition from the U.S. began with the business community. The U.S. Chamber of Commerce and the Computer & Communications Industry Association (CCIA)—which includes Google and Amazon—have publicly opposed South Korea’s efforts to implement the Onple Law since the previous Yoon administration.
Now, this opposition has spread to the U.S. legislative and executive branches.
On July 1, 43 members of the U.S. House of Representatives signed a letter urging the Trump administration to address the Onple Law during trade negotiations with South Korea.
On July 24, the House Judiciary Committee sent a letter to Korea’s Fair Trade Commission (KFTC) requesting an explanation of how the law might affect U.S. businesses.
U.S. officials argue that the Onple Law unfairly targets American tech giants such as Google, Apple, and Meta under the guise of regulation, referring to it as a “digital trade barrier.”
The U.S. House also claimed, “Korea’s bill resembles the EU’s blatantly discriminatory Digital Markets Act (DMA),” and alleged that it would “advance the interests of the Chinese Communist Party by excluding major Chinese platforms like ByteDance, Alibaba, and Temu from regulation while disproportionately targeting U.S. companies.”
KFTC Chair Han Ki-jung attempted to defuse concerns at a parliamentary hearing, stating that “the law is not intended to target any particular country.” However, U.S. suspicions remain.
With former President Donald Trump back in office and a global tariff war reignited, the Onple Law’s legislative journey has become even rockier.
The Trump administration is reportedly treating Korea’s Onple Law as a major agenda item in ongoing negotiations over a proposed 25% reciprocal tariff agreement.
Presidential policy chief Kim Yong-beom noted in a July 25 briefing, “The Onple Law is indeed being treated as a major issue—something the National Assembly is well aware of.”
Some speculate that the reason a new chairperson for the KFTC has not yet been appointed, even 50 days after the start of the Lee administration, is due to concerns about sending the wrong message to the U.S.—a kind of political “wait-and-see” approach.
The government and the Democratic Party are now considering splitting the Onple Law into two separate pieces: one regulating monopolies (Monopoly Regulation Law) and another addressing unfair practices in vendor-platform relationships (Fair Trade Law).
The plan is to postpone the monopoly regulation portion—strongly opposed by the U.S.—and first implement the Fair Trade Law to address the immediate challenges faced by small businesses.
The Fair Trade Law discussions have leaned toward setting a cap on the commissions charged to vendors by platforms.
However, since such a cap could apply to platforms like Google Play and Apple’s App Store, which are U.S.-based, lawmakers are reportedly narrowing the law’s scope to target domestic delivery apps only. They are also considering enacting the commission cap under a separate law.
On July 22, the National Assembly’s Political Affairs Committee was set to review the detailed provisions of the Fair Trade Law but postponed discussions until mid-August.
Rep. Kang Jun-hyun, the Democratic Party’s committee secretary, remarked, “If the wrong message is sent, it could hinder trade negotiations with the U.S.”
What exactly the U.S. is demanding in relation to the Onple Law remains unclear. Even if a tariff agreement is reached, the U.S. may continue to oppose Korea’s regulatory efforts.
Concerns are growing that delays in passing the Onple Law will hurt domestic industries and small business owners.
Without monopoly regulation, American tech giants like Google and Meta are likely to maintain their dominant positions in the Korean market.
The weakened foundation for fair competition may also undermine innovation opportunities for Korean startups and small businesses.
Delays in regulating app stores like Google Play and Apple’s App Store may force vendors to continue bearing high fees and unfair contract terms.
Prof. Jeon Sung-min of Gachon University warned, “If legislation is delayed, global platforms will only strengthen their existing advantages and expand their businesses through technologies like AI. Domestic platforms will be the ones to suffer.”
Small merchants and self-employed individuals who rely on platforms may be hit even harder.
They are calling for stronger legal protections, such as mandatory commission caps.
Prof. Lee Jung-hee of Chung-Ang University emphasized, “Merchants are waiting for protective measures, but the delay is growing. Given the unique and rapidly changing nature of digital platforms, current fair trade laws clearly fall short.”
Prof. Jeon concluded, “We need to shift our strategy and approach this issue as part of strengthening digital and AI collaboration between South Korea and the U.S. The U.S. also needs trustworthy partners to maintain global dominance—rather than framing this as a regulatory clash, we should frame it as a strategic digital alliance.”
Posted by Freewhale98