[THE INVESTOR] Global tech giants Google and Facebook are under increasing pressure from South Korean authorities and lawmakers to become more “transparent and fairer” in running their businesses here. 

Kim Sang-jo, head of the nation’s antitrust watchdog, said Sunday he is “reviewing” how to regulate Google and Facebook’s alleged abuse of market dominance. 

“(Google and Facebook are) sweeping information without paying a dime here on the network set up by taxpayers’ money,” said Kim, who is also known as “chaebol sniper,” in an interview with Yonhap News Agency.

He was recently appointed as the chairman of the Korea Fair Trade Commission by new liberal president, Moon Jae-in.

“This is an issue from the perspective of not only the industry but also authorities. We should cautiously study how to approach this issue,” the FTC head added.

Kim’s remark is in line with the latest bill proposed by Rep. Oh Se-jeong of the smaller opposition People’s Party.

Last week, Oh proposed the bill to revise the telecommunications business act to require global firms to make financial and business information public like Korean firms do. 

His proposal was triggered by the recent dispute between Facebook and local internet service providers SK Broadband and LG Uplus.

Last month, Facebook demanded the expansion of private network from SK and LG with their own money on the surge of users and data use for the US social media site. When they turned down the demand, the US tech firm blocked local users from accessing the site using the servers located in Korea. The local users had to access the site via the servers located in Hong Kong and the US, which thus made the access slower.

Despite the inconvenience caused from the incident, the government was not able to arbitrate in the matter due to the lack of information and knowledge of the US firm, according to Oh.

“The government should secure accurate information to set up measures and guidelines for the global firms,” Oh said.

Google has also been put under fire for years for the alleged abuse of its Android operating system’s market dominance.

The FTC recently resumed its investigation into Google for the charges of pre-installing Google app in smartphones using Android operating system.

According to Rep. Cheon Hae-cheol from the ruling Democratic Party of Korea, Google signed an agreement with Samsung in 2011 to make Google Search set as the default and to expose its 12 apps, including YouTube and Gmail, on the front screen of Samsung phones. It also reportedly required Samsung not to develop new OS using Android’s algorithm.

The FTC, which had begun investigating the issue back in 2011, dropped the case after three years citing how Google’s market dominance was only around 10 percent in Korea. It resumed the investigation recently as the share of mobile Android OS has increased since. 

“Despite tens of millions of dollars Facebook and Google gain here, they pay no tax and demand private network for free. This can be seen only as the tyranny of market-dominating company,” said Shin Min-soo, a professor at Hanyang University.

The two companies have steadfastly contended that they abide by all relevant regulations and rules of South Korea.

Facebook Korea, more recently, had commented that their headquarters were currently under discussion with telecommunication businesses to provide better environment for Korean users.

By Shin Ji-hye/The Korea Herald (shinjh@heraldcorp.com)