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Newsletter | May 2014, Issue 2 |
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ANTITRUST & COMPETITION |
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KFTC Approves First Consent Decree |
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On March 12, 2014, the Commissioners of the Korea Fair Trade Commission ("KFTC") approved a consent decree with Korea's major Internet portal companies, Naver and Naver Business Platform (collectively "Naver") and Daum Communications ("Daum"). This was the first time since its introduction that a consent decree was used to conclude a case before the KFTC. With this consent decree, the KFTC's investigation of Naver and Daum for their alleged abuse of market dominance ended without any finding of liability. |
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The consent decree process allows the businesses subjected to the KFTC investigation to conclude the case without a finding of liability. |
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This case dealt with issues such as whether the Internet portal companies displayed their own premium services together with search results making it unclear the distinction between search results and keyword advertisements. The KFTC's approval of the consent decree in this case is significant in that it has established the consent decree as a tool for promptly resolving cases in dynamic and innovative markets, such as the online search market. |
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Because the Monopoly Regulation and Fair Trade Law allows companies to apply to conclude an investigation through a consent decree in cases other than cartels and those meeting the threshold for filing a criminal complaint, it remains to be seen whether the consent decree will be more widely used to conclude subsequent investigations going forward. |
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Kim & Chang represented Naver in this case. |
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