Fair Trade Commission in Sejong City. [Photo by Yu Dae-gil]
On May 21, the Fair Trade Commission (FTC) announced it will conduct a survey of major domestic and international companies participating in South Korea's artificial intelligence (AI) service market. The aim is to analyze and assess the current trading practices and competitive conditions within the domestic AI service sector.
The FTC noted that while the integration of AI services is driving innovation and competition in related products and services, it is also contributing to increased market concentration among a few companies. This concern is echoed by major global competition authorities in the UK, France, and Australia, which are focusing on the AI service market within the entire AI value chain.
To proactively address potential competition and consumer issues, the FTC will conduct this survey under Article 87, Section 1 of the Monopoly Regulation and Fair Trade Act, aiming to understand the structure and competitive landscape of the domestic AI service market.
In the first phase of the survey, the FTC plans to target 17 key providers of AI service-enabled products, whether they are offering their own or third-party AI services.
Key areas of investigation will include: the current status of AI service businesses and related transactions, the competitive landscape within the AI service market, the methods of AI service provision to consumers, and any experiences of anti-competitive or unfair trading practices.
The second phase of the survey will focus on consumer perceptions and behaviors regarding AI services and products, set to begin in July.
An FTC official stated, "We will closely analyze the results of the survey and maintain ongoing communication with market participants and experts in academia. We plan to publish a policy report on 'Competition in the Downstream AI Market' later this year to foster a fair competitive environment in the AI market."
The FTC noted that while the integration of AI services is driving innovation and competition in related products and services, it is also contributing to increased market concentration among a few companies. This concern is echoed by major global competition authorities in the UK, France, and Australia, which are focusing on the AI service market within the entire AI value chain.
To proactively address potential competition and consumer issues, the FTC will conduct this survey under Article 87, Section 1 of the Monopoly Regulation and Fair Trade Act, aiming to understand the structure and competitive landscape of the domestic AI service market.
In the first phase of the survey, the FTC plans to target 17 key providers of AI service-enabled products, whether they are offering their own or third-party AI services.
Key areas of investigation will include: the current status of AI service businesses and related transactions, the competitive landscape within the AI service market, the methods of AI service provision to consumers, and any experiences of anti-competitive or unfair trading practices.
The second phase of the survey will focus on consumer perceptions and behaviors regarding AI services and products, set to begin in July.
An FTC official stated, "We will closely analyze the results of the survey and maintain ongoing communication with market participants and experts in academia. We plan to publish a policy report on 'Competition in the Downstream AI Market' later this year to foster a fair competitive environment in the AI market."
* This article has been translated by AI.
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