Fair Trade Commission to Push Online Platform Act... Strict Investigation of Unfair Smartphone Advertising [Work Report]

Strict Crackdown on Most-Favored-Nation Demands by Delivery Apps and App Markets

Tough Action Against Deceptive Online Practices

Intensive Investigation and Correction of Unfair Smartphone Advertising Announced

The government is set to take strong action against the abuse of market dominance in digital platform markets such as food delivery apps and online shopping. It will also launch a strict investigation into unfair advertising practices on smartphones that mislead users into believing that unimplemented AI features are already available as commercialized functions.

Joo Byung-gi, Chairperson of the Fair Trade Commission, is speaking at the government ministry briefing presided over by President Lee Jae-myung at the Blue House State Guest House on the 4th. Photo by Yonhap News.

On August 4, Joo Byung-ki, Chairman of the Fair Trade Commission, presented these measures for creating an innovative digital market ecosystem during the presidential work report held at the Blue House State Guesthouse. In the digital market, the government plans to crack down on most-favored-nation demands by delivery apps and app markets, as well as deceptive practices against consumers in online shopping. It will also support the legislation of the Online Platform Fairness Act and the Delivery Platform Act. Addressing concerns over legislative delays in the National Assembly, the Fair Trade Commission stated, “We are actively supporting the achievement of results at the regular National Assembly session in the second half of the year, but are approaching sensitive trade-related issues with appropriate caution.”

For cutting-edge artificial intelligence (AI) technology, the commission will revise review standards for indirect mergers and acquisitions (M&As) that absorb key personnel and will focus on monitoring dark patterns. In particular, it will conduct thorough investigations and corrective actions regarding unfair smartphone advertisements that exaggerate the prospect of receiving unimplemented AI features in the future, or conceal functional limitations that apply under specific conditions. Regarding the merger of big tech companies (the Naver-Dunamu merger), the commission is rapidly reviewing the merger procedures, and for the integration of Korean Air and Asiana Airlines mileage programs, it explained, “We have requested additional supplementary plans in the interest of consumer protection and will approve the integration after working-level consultations, before the official launch at the end of the year.”

This content was produced with the assistance of AI translation services.