United States lawmakers have expressed concerns regarding South Korea’s proposed Online Platform Act.

They describe the bill as potentially discriminatory against American tech companies.

A group of 43 US lawmakers, led by Representatives Adrian Smith and Carol Miller, sent a letter on July 3, 2025 to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent, and Secretary of Commerce Howard Lutnick.

The letter criticizes the proposed legislation for imposing disproportionate regulatory burdens on American digital firms while exempting Chinese companies like ByteDance and Alibaba.

South Korea aims to regulate dominant online platforms to protect users.

However, the US has warned of potential retaliatory tariffs in response to these measures.

The trade talks face a July 8 deadline, when the current pause on US reciprocal tariffs is set to expire.

If an agreement is not reached, South Korean exports could face tariffs of at least 20%.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Digital regulation becoming a new front in trade disputes

South Korea’s platform regulation struggle represents a growing trend where digital policy becomes a flashpoint in international trade relations.

The conflict follows a pattern seen in other markets: the EU’s Digital Markets Act sparked similar US objections when introduced, with American officials arguing it disproportionately affected US tech companies 1.

This dispute comes amid a decades-long trade relationship formalized in the 2007 US-Korea Free Trade Agreement, which eliminated nearly 95% of bilateral tariffs on consumer and industrial products 2.

The timing is particularly sensitive as it coincides with the July 8 deadline for US “reciprocal” tariffs, potentially affecting billions in Korean exports including technology products.

Historical precedent shows these digital policy conflicts can escalate quickly. Previous disputes between these countries have required WTO intervention, as seen in cases like DS488 regarding anti-dumping measures 3.