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Incident 191: Korean Internet Portal Giant Naver Manipulated Shopping and Video Search Algorithms to Favor In-House Services

Description: The Korean Fair Trade Commission (FTC) imposed a 26.7B KRW on Naver for manipulating shopping and video search algorithms, favoring its own online shopping business to boost its market share.

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Alleged: Naver developed and deployed an AI system, which harmed Naver customers.

Incident Stats

Incident ID
191
Report Count
2
Incident Date
2020-10-06
Editors
Sean McGregor, Khoa Lam
Applied Taxonomies
GMF, MIT

MIT Taxonomy Classifications

Machine-Classified
Taxonomy Details

Risk Subdomain

A further 23 subdomains create an accessible and understandable classification of hazards and harms associated with AI
 

6.1. Power centralization and unfair distribution of benefits

Risk Domain

The Domain Taxonomy of AI Risks classifies risks into seven AI risk domains: (1) Discrimination & toxicity, (2) Privacy & security, (3) Misinformation, (4) Malicious actors & misuse, (5) Human-computer interaction, (6) Socioeconomic & environmental harms, and (7) AI system safety, failures & limitations.
 
  1. Socioeconomic & Environmental Harms

Entity

Which, if any, entity is presented as the main cause of the risk
 

Human

Timing

The stage in the AI lifecycle at which the risk is presented as occurring
 

Post-deployment

Intent

Whether the risk is presented as occurring as an expected or unexpected outcome from pursuing a goal
 

Intentional

Incident Reports

Reports Timeline

+2
Naver fined for manipulating search algorithms
Naver fined for manipulating search algorithms

Naver fined for manipulating search algorithms

theinvestor.co.kr

Naver fined W26.7 bil. for manipulating search algorithm

Naver fined W26.7 bil. for manipulating search algorithm

koreatimes.co.kr

Naver fined for manipulating search algorithms
theinvestor.co.kr · 2020

South Korea‘s antitrust regulator on Oct. 6 imposed a 26.7 billion won ($22.9 million) fine on Naver, accusing the company of manipulating search algorithms to favor its own online shopping business.

Naver, in response, said the company wil…

Naver fined W26.7 bil. for manipulating search algorithm
koreatimes.co.kr · 2020

The Fair Trade Commission (FTC) announced Tuesday that it had fined Korean internet portal giant Naver 26.7 billion won ($23 million) for manipulating its shopping and video services search algorithms to place its own services on the top of…

Variants

A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.
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