This photo shows a billboard advertising LawTalk, an online service that connects clients and lawyers, in Seoul on Feb 23, 2023. (Yonhap)
SEOUL, Feb. 23 (Korea Bizwire) – South Korea’s antitrust regulator said Thursday it has decided to fine two bar associations 2 billion won (US$1.53 million) each for restricting their members from joining LawTalk, a platform that connects users and attorneys.
The move came as the Korean Bar Association and the Seoul Bar Association ordered their members to leave the platform, which has hindered “fair and free” competition in the market, according to the Fair Trade Commission (FTC).
LawTalk is a service launched by Law&Company Co., which provides users with a list of lawyers in different categories and prices for their consulting services. It allows users to compare different lawyers and read reviews written by other users.
Local bar associations argue that the platform will provoke lawyers to engage in a price competition, which eventually could lead to a decline in the quality of legal services.
According to the FTC, the Korean Bar Association demanded 1,440 lawyers who joined LawTalk to hand in documents confirming their withdrawal from the platform in 2021 on four separate occassions, warning they otherwise can be punished.
The Seoul Bar Association also made a similar request to its lawyers.
“(The two associations) have impeded lawyers who are in a competitive relationship from providing consumers with information about themselves, thereby limiting free competition among attorneys and consumers’ right to choose their lawyers,” the FTC said.
The regulator also pointed out that the two associations are in a position to exercise a significant influence on the members, as lawyers are obligated to join the organizations.
The FTC said the latest measure is expected to improve consumers’ access to the legal market where “information asymmetry” remains high and help them to choose from wider options.
The FTC vowed to continue monitoring disputes among new platforms and existing associations, and take stern actions on any violations of the law.
The Korean Bar Association, meanwhile, said it will immediately seek to bring a lawsuit against the decision.
“The act of adopting a rule that serves as the grounds to ban lawyers from using the platform, and informing them of it, is not subject to the intervention of the FTC,” the association said.
Law&Company, on the other hand, said it welcomes the ruling.
“The action (of the two bar associations) was an illegal activity, which was excessively burdensome for a South Korean startup,” the operator said in a statement, claiming it has lost around 4,000, or half of its lawyer members, due to such pressures.
“We earnestly ask the association to accept the results from the FTC and positively make efforts to ultimately settle the issue.”
(Yonhap)
