The United States is ramping up pressure against South Korea’s proposed platform regulation laws, which seek to curb illegal and unfair practices by dominant online platforms. American officials, think tanks, and business groups have criticized the legislation, claiming it could harm U.S. tech giants like Google, Apple, and Meta. They have labeled the proposals “discriminatory” and warned of potential strain on U.S.-South Korea relations.
The proposed laws aim to regulate monopolistic practices by both foreign and domestic platforms, with the goal of protecting consumers and small businesses. However, critics in the U.S. argue that the legislation could stifle innovation and disproportionately target American companies. Some in South Korea view the U.S. opposition as overreach, describing it as “interference disguised as protecting national interests.”
Washington, D.C.-based think tank Information Technology and Innovation Foundation (ITIF) released a 20-page report on Dec. 9 titled Why South Korea Should Resist New Digital Platform Laws. The report stated, “With U.S. elections over, South Korea risks a backlash from a new administration unlikely to tolerate policies that harm major U.S. businesses,” adding, “South Korea relies on U.S. support to be a leader in IT, telecom, semiconductors, and defense. Alienating America undermines its regional leadership and weakens its ability to counter growing security threats and economic competition from China.”
ITIF also criticized the proposed reforms for reflecting provisions of the EU’s Digital Markets Act (DMA). “Proposed reforms modeled after the EU-DMA’s provisions could stifle innovation, raise costs, and reduce user benefits,” the report argued. “Instead of driving competition, they risk harming consumers and undermining efficiency. South Korea’s proposed reforms restricting common platform practices target large U.S. and South Korean firms, stifling innovation and exempting smaller rivals while inviting Chinese firms to fill the void.”
Charles Freeman, senior vice president for Asia at the U.S. Chamber of Commerce, voiced similar concerns in a Dec. 17 statement. “The U.S. Chamber remains concerned with Korea’s approach to regulating digital platforms,” he said. “In cooperation with lawmakers from the People Power Party, the Korea Fair Trade Commission (KFTC) has put forward a bill in the National Assembly that, if passed, would target certain companies while leaving out other competitors, both those based in Korea and in third countries, including China.” The U.S. Chamber of Commerce, which represents over 3 million businesses, opposes the legislation as unfairly singling out American platforms.
The proposed laws include the “Act to Promote Fair Competition in Platforms,” introduced by the KFTC and the ruling party in October, and the “Online Platform Fairness Act,” proposed by opposition lawmakers. Both bills aim to regulate dominant platform operators and impose penalties of up to 8% of annual revenue for unfair practices such as self-preferencing, bundling, and restricting merchants from using rival platforms.
While the U.S. argues that such regulations are unnecessary in South Korea’s competitive market, where American platforms face local rivals like Naver and Coupang, proponents of the law stress the need for stronger oversight amid growing monopolistic behaviors in e-commerce and app marketplaces.
One South Korean industry insider criticized the U.S. stance as inappropriate, stating, “This is an issue that should be resolved through domestic debate, not foreign pressure.”
Another expert warned of potential market distortions. “Contrary to U.S. claims, the platform regulation law could worsen discrimination by punishing domestic platforms while leaving foreign platforms with overseas headquarters, like Google and Apple, unaffected,” the expert said. Critics have pointed out that such companies often avoid full disclosure of their operations in South Korea due to their overseas legal structures.
The issue could also influence U.S. trade policy under the incoming Trump administration. Jamieson Lee Greer, nominated as U.S. trade representative, is known for his protectionist views. In a January column for Barron’s, Greer cautioned, “This new legislation would resurrect major disputes and likely cause another flare-up in trade tensions,” adding, “I would urge caution on the part of Korean officials to avoid another clash. There is no good path forward where Korean regulations treat U.S. companies more restrictively compared to domestic—and Chinese—companies operating in the digital space.”
With close ties between Trump and U.S. tech giants, observers predict heightened U.S. intervention. “The first Trump administration strongly supported Big Tech, and the second term is likely to do the same,” a South Korean industry insider said. “This raises concerns about the growing dominance of U.S. platforms in our market.”
