US IT Industry: "Korea Digital Trade Barriers Must Be Eliminated... Platform Law Promotion Stopped"

The Computer and Communications Industry Association (CCIA), which represents the U.S. information technology (IT) industry, announced its position on the 28th regarding the Korea-U.S. tariff negotiations, saying, "We urge a halt to the promotion of discriminatory bills such as the Platform Competition Promotion Act (Platform Act)."



Computer and Communications Industry Association (CCIA) logo [Photo = Computer and Communications Industry Association (CCIA)]



On this day, CCIA stated that it shares the same opinion as the Information Technology and Innovation Foundation (ITIF) that released its position on the 15th titled, "Low Tariffs Aren't Enough: Korea Should Remove Its Trade Barriers With the United States."



The ITIF has stated that despite the fact that the average tariff rate has been reduced to less than 3% since the conclusion of the Korea-U.S. Free Trade Agreement (KORUS) and is expected to be reduced to less than 0.5% by next year, U.S. technology companies still face dense regulatory barriers in digital services, semiconductors, and cloud infrastructure, including opaque regulations and industry-specific restrictions that restrict market access and distort competition.



CCIA, which shared this position, argued that "the Korean government should use the current 90-day reciprocal tariff deferral measure as a diplomatic tool to align data governance and digital competition regulations with U.S. standards and streamline certification and compliance procedures."



It also urged that "by reducing unfair burdens on U.S. platform companies, such as the Fair Trade Commission's non-tariff barriers, Korea should revise its trade system to reset trade between Korea and the U.S.," and "(Regulatory reform) will strengthen Korea's position as a trustworthy partner, enhance global competitiveness, and contribute to promoting innovation-led growth in the Pacific region." In addition, it established subordinate regulations to ease and postpone excessive regulatory requirements related to artificial intelligence (AI) and urged Korea to avoid tensions and not join the European Union (EU) in its digital regulatory policies.



CCIA is a non-profit organization whose members include American big tech (large IT companies) such as Google and Meta (formerly Facebook). They have argued that Korea's prior designation of the platform law (designating dominant market operators and investigating and reviewing illegal activities) is discrimination.



Associations and groups representing the interests of American big tech have recently expressed their positions one after another and are pressuring the Korean government and regulatory authorities. The American Chamber of Commerce in Korea (AMCHAM), which represents American companies operating in Korea, also released a report early this month demanding improvements to the uncertainty of the domestic business environment and regulatory barriers. The report mentioned that there are approximately 70 regulations across 12 industries including aerospace, automobiles, pharmaceuticals, digital economy, and energy. In the case of the digital economy, it analyzed that restrictions on cross-border data transfer and regulations targeting specific companies hinder fair competition.





https://www.inews24.com/view/blogger/1838958

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