Republic of Korea: Bill on Online Platform Monopoly Regulation (Bill no. 2201430) was introduced to National Assembly

On 5 July 2024, the Bill on Online Platform Monopoly Regulation (Bill no. 2201430) was introduced in the National Assembly. It proposes new competition rules for certain digital platforms. It introduces market thresholds and "gatekeeper" definitions that apply platforms with at least 10 million monthly domestic users and a 60% market share, or 20 million monthly domestic users across three or fewer platforms with a combined market share of 85%. However, companies with annual revenues below KRW 3 trillion (approximately USD 2 billion) would be exempt. The proposed obligations restrict various platform practices, including self-preferencing, which prevents companies from favouring their own products or leveraging non-public data from third-party sellers. It also seeks to prohibit tying and bundling, limit restrictions on multi-homing, and ban most-favoured-nation (MFN) clauses, which require businesses to offer the best terms on a specific platform. Non-compliance could result in fines of up to 8% of relevant sales or a fine of up to KRW 3 billion (approximately USD 2 million). Regulators would also have the power to issue temporary suspension orders.