Dom­i­nance of IT com­pa­nies

The Korea Times - - OPINION - Japan News (AP)

IT com­pa­nies of the United States and else­where quickly be­come enor­mous by tak­ing ad­van­tage of their mas­sive amounts of dig­i­tal data. It is a mat­ter of course that a sense of wari­ness also grows.

To pre­vent the ill ef­fects of their mar­ket dom­i­nance from spread­ing, the gov­ern­ment needs to quickly im­ple­ment ef­fec­tive reg­u­la­tions.

A gov­ern­men­tal panel of ex­perts tasked with con­sid­er­ing reg­u­la­tions on IT gi­ants — known as dig­i­tal plat­form op­er­a­tors — heard opin­ions from Google and Ap­ple, both of the United States. Facebook only sub­mit­ted an opin­ion pa­per, and Ama­zon did not at­tend the in­ter­view.

Google and oth­ers ex­pressed their con­cerns that tech­no­log­i­cal in­no­va­tion could be im­peded if ex­ces­sive re­stric­tions are placed on them. When the panel pointed out that the IT mar­ket is in a state of oli­gop­oly, they re­port­edly re­futed that by say­ing they are ex­posed to com­pe­ti­tion.

The panel will com­pile a fi­nal re­port shortly. The panel is ex­pected to call on the gov­ern­ment to make it oblig­a­tory for these dig­i­tal plat­form op­er­a­tors to dis­close such im­por­tant in­for­ma­tion as the terms of the con­tracts with their trad­ing part­ners.

The Euro­pean Union is mov­ing for­ward with the draft­ing of reg­u­la­tions to be im­posed on IT gi­ants. Japan's gov­ern­ment should work out the de­tails of its reg­u­la­tions by us­ing as a ref­er­ence the reg­u­la­tions be­ing drawn up by the EU.

Dig­i­tal plat­form op­er­a­tors have pro­duced in­no­va­tive tech­nolo­gies, but as they bol­stered their mar­ket dom­i­nance, there have been in­creas­ing cases of their buy­ing out newly grow­ing en­ter­prises.

As things stand now, this could re­sult in mar­ket com­pe­ti­tion be­ing re­stricted, mak­ing it likely that the young buds of new tech­nolo­gies and ser­vices will be nipped.

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