The FTC, the restrictions on the competition restrictions on the competitive phone, parts, and IoT

The Fair Trade Commission announced on the 3rd that it will analyze three industrial markets, including affordable phones, auto parts, and the Internet of Things (IoT), to promote competition in the monopoly industry and to respond to competition issues in the new industry. The FTC plans to improve the competition limited system and practices following market analysis.

Ko Byung -hee, a policy officer of the FTC, said, “The monopoly structure continues in various industries in Korea, and the economic concentration of the new industry is becoming more prominent.” There have been cases of damaging the other party, a relative weak, ”explained the background of the market analysis in the three fields.

Mr. Ko said, “The government’s entry regulation prevents the entry of new competitors and acts as a factor in fixing the monopoly of existing operators, but the competitors are not easy to improve in a timely manner until the stakeholders report and suggest. If the investigation proceeds based on the report, it can be a burden on the company. It is more effective to do it. ”

The FTC selected one new industry (Internet of Things), which requires preemptive analysis, such as two monopoly industries (affordable phones and auto parts) and identification of trading structure, considering the market structure, performance, and the impact of the national economy this year.

The affordable phone is reorganizing around the existing telecommunications company as the three telecommunications subsidiaries, such as SK Telecom, KT, and LG Uplus, enter the market to increase their market share.

The FTC plans to check whether the incentive for competition between mobile carriers and affordable phone operators, which will be restricted from the intent of introducing a budget phone to promote competition through small and medium-sized operators, is not distorted.

Mr. Ko said, “We analyze whether there are any unfair or discriminatory factors in the use of communication networks, fare decisions, and distribution processes, and whether there are no consumer dissatisfaction factors in the process. We will also look at the need to expand the scope of the provision. ”

The auto parts sector will create major parts subcontracting guidance, and examine whether there is a way to reduce the exemplary trading practices of OEMs and expand the independent market of small and medium -sized operators. In addition, we will also seek ways to improve the system, such as the amendment of the insurance terms and conditions so that the substitute parts of small and medium -sized operators can compete with OEM parts (genuine goods).

In consideration of the fact that the price collusion is frequent in parts purchase bidding by automakers, the company plans to look at ways to increase the bidding fairness.

The Internet of Things is a factor that makes it difficult to enter new entertainment in terms of interoperability between operating systems and smart devices, and technology standardization between the operating system (OS) and smart devices. Analyze whether there is.

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We will check the factors that reduce competitive incentives such as contract clauses that are disadvantageous to one side, and will examine the registration, reporting requirements and security and performance certification systems that cause burden on operators.

Based on the results of market analysis, the FTC plans to actively promote the improvement of competitive institutions and practices by consulting with relevant ministries.

Mr. Ko said, “The purpose of this market analysis is to induce autonomous practices through private participation and communication.” It is. ”