“If a monopolistic platform provider enters the app market, the monopoly may expand,” said the institute. (image: Korea Bizwire)
SEOUL, May 23 (Korea Bizwire) — Experts are arguing that the practices of Kakao Corp., Naver Corp., and other platform businesses selling apps using their own platforms are negatively impacting the national economy.
Local research institute Pi-Touch announced on Wednesday that if platform providers refrain from selling apps on their own platforms, 1.8 million jobs would be created and app costs would be reduced by 56.8 percent.
Kakao currently offers delivery and transaction apps through KakaoTalk and Daum, a South Korean web portal. Naver offers transaction apps and cosmetics shopping services through Line and Naver.
KT Corp., SK Telecom Co., LG Uplus Corp. and other mobile carriers have also introduced various apps for real estate, credit cards, online shopping malls, and transaction services based on their own mobile communication platforms.
“If a monopolistic platform provider enters the app market, the monopoly may expand,” said the institute. “Monopolistic platform providers should refrain from participating in the app market.”
Prof. Yoon Byung-sup from Seoul Venture University argued that platform providers are driving out other competitors in the app market and undermining innovation by selling apps on their own platforms.
“Restrictions should be imposed on platform providers to prevent them from undermining user benefits by disrupting fair competition,” said Baek Kwang-hyun, an attorney at Barun Law LLC.
“It is more than simply restricting the influence of a monopoly. We should see it as a way to enable new businesses to enter the market.”
H. M. Kang (hmkang@koreabizwire.com)
