The Computer & Communications Industry Association (CCIA) has expressed encouragement over the Korea Fair Trade Commission's (KFTC) recent decision to shift away from ex-ante regulation of select digital service providers. The CCIA noted that such regulation is not suitable for a leading digital economy like Korea. However, there are still bills under consideration in the Korean National Assembly proposing ex-ante regulation of digital platforms, which could negatively impact the global export competitiveness of both U.S. and Korean companies.

While ex-post competition regimes generally lead to better outcomes, the new ex-post regulatory framework proposed by the KFTC retains problematic elements from the ex-ante proposals. These include disproportionate targeting of U.S. companies and a narrow focus on online services provided by U.S. firms in Korea. The CCIA recommends that the Korean Government, along with the Korea Communications Commission (KCC) and Ministry of Science and ICT (MSIT), consult with stakeholders from both public and private sectors to evaluate the current regime before considering any new frameworks.

CCIA President & CEO Matt Schruers commented: "Should ex-ante regulatory legislation advance, it is likely to bring unforeseen consequences and aid Chinese competitors to gain a stronger foothold in the region. Moreover, the KFTC has newly proposed an ex-post regulatory bill that retains many of the counterproductive features of the ex-ante bill, including applying thresholds and definitions that have a disproportionately negative impact on U.S. companies."

Schruers further urged Korean policymakers and legislators to abandon both the ex-ante and ex-post proposals targeting U.S firms, stating that these measures could exacerbate risks related to Chinese influence on the essential U.S.-Korean economic and security relationship. He described both regulatory proposals as "solutions in search of a problem" that are counterproductive for a digital economy powerhouse like Korea.

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