Online Platforms Crush Small Businesses
The monopolistic behavior of online platforms like 배달의민족 and 카카오 대리 is putting the livelihoods of small business owners at severe risk. As reported by Yonhap News, small business associations are rallying for urgent legislative action to protect their rights against these digital giants.
Democratic Party Faces Pressure to Act
In a recent press conference, civil society groups urged the Democratic Party to expedite the passage of the long-awaited Online Platform Law (온플법) aimed at regulating monopolistic practices. According to MTN News, the law has been stalled due to external pressures, primarily from American lawmakers who argue that it unfairly targets U.S. tech companies.
South Korean Lawmakers Approve Special Investigations into ...
U.S. Lawmakers Intervene
U.S. representatives have formally criticized the proposed legislation, claiming it could be detrimental to American businesses. On July 3, a group of 43 House members sent a letter to the U.S. Trade Representative demanding action against what they perceive as excessive regulation aimed at U.S. digital firms. This intervention raises questions about national sovereignty and the right of a country to safeguard its small businesses without external interference.
Legislation Divided into Two Key Bills
The proposed Online Platform Law is split into two significant parts: the Monopoly Regulation Act, designed to prevent anti-competitive practices, and the Fairness in Online Platform Transactions Act, which aims to protect the rights of smaller vendors. The Democratic Party has decided to prioritize the Fairness Act, as it presents less potential for international trade friction. The Monopoly Regulation Act, however, remains in limbo, a casualty of international pressure.
Kakao Corp | Reuters
Impact on Workers and Small Businesses
Failure to pass comprehensive reform could exacerbate the already precarious conditions faced by small business owners and their workers. The delivery app fee caps and measures to prevent payment discrimination are not just policy details; they are lifelines for those struggling to make ends meet in an increasingly digital marketplace. As highlighted by small business leaders, the lack of regulation enables platforms to exploit businesses without accountability.
