The Framework

South Korea’s proposed Online Platform Antitrust Regulation Act is designed to impose stricter controls on online platforms deemed to have significant market power. It grants authorities broader scope to investigate and penalize behaviors classified as unfair or anti-competitive, such as preferential treatment of a platform’s own services over third-party offerings. Though framed as consumer protection and market fairness, the policy effectively targets companies with a dominant share in the digital economy.[1]

Implications for U.S. Technology Companies

Because many major digital platforms operating in South Korea are U.S.-based, the regulation poses a particular risk to large American firms that fall within its broadened definition of market dominance. These companies could face heightened scrutiny, legal challenges, and potential fines. Over time, such pressures may limit their ability to innovate and invest in the South Korean market, as they adjust to avoid penalties and navigate uncertainties in compliance.

How China Benefits

Chinese technology companies, backed by state resources, often focus first on their massive domestic market before branching out internationally. By constraining U.S. firms with heavy-handed regulations, the door opens for Chinese competitors to capture market share abroad. Moreover, smaller Chinese firms are less likely to trigger the same thresholds for regulatory attention, making them relatively better positioned to expand, thus bolstering China’s digital influence globally.

Endnotes