-Understanding the Transaction Relationships and Competition Status Among Major Domestic and International Generative AI Businesses -
Starting from August 1, the Korea Fair Trade Commission (hereinafter referred to as 'FTC') will commence a survey of the AI (Artificial Intelligence) market, targeting major domestic and international businesses in the field.
The rapid advancement of generative AI, exemplified by ChatGPT, is significantly impacting the industry and everyday life. Currently, the AI market is forming various transaction relationships both between businesses (B2B) and between businesses and consumers (B2C). It is expected to become a key industry driving future economic growth.
However, due to the nature of AI technology, which requires significant capital and computing infrastructure, there are emerging competition law issues such as high market concentration due to a few companies securing competitive advantages and potential entry barriers to essential production factors. Major competition authorities and international organizations are showing high interest in the AI sector, with some starting to analyze the market or publish reports on it.
In response, the FTC will conduct a market study under Article 87, Paragraph 1 of the Monopoly Regulation and Fair Trade Act to analyze transaction relationships and competition in the domestic generative AI market and proactively identify potential competition and consumer issues that may arise in the future.
Before the full-scale survey, the FTC conducted literature reviews and gathered opinions through academic and industry consultations to select the survey targets and items.
The survey will target about 50 major domestic and international businesses that develop and sell AI-related products and services (such as foundation models and computing hardware) to domestic customers. The FTC will send written survey forms and request necessary data within the required scope.
The main survey items include general business status, product and market status, transaction status in various AI-related fields, and experiences of unfair trade practices. The survey aims to comprehensively understand the transaction practices and competition relationships between businesses and the detailed market structure.
Based on the survey results, the FTC plans to explore competition policy directions to sustain innovation and fair competition in the AI market. It will also work to enhance predictability for AI market participants and create a more competitive and consumer-friendly market environment. The FTC aims to publish an "AI Policy Report" by the end of this year, incorporating advice from academia and external experts.