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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] The Korea Fair Trade Commission (KFTC) has decided to impose a fine of 140 billion won on Coupang for manipulating search rankings to prioritize its Private Brand (PB) products, thereby generating profits and harming other businesses.
The KFTC found that Coupang had been artificially boosting the rankings of its PB products in search results, which led to increased visibility and sales. Additionally, there were indications that employees were posting fake reviews and giving high ratings to these products.
An investigation by the KFTC, which lasted over two years, concluded that many of the claims made by the civic group People's Solidarity for Participatory Democracy were valid. Coupang reportedly inflated the search ranking scores of its products by 1.5 times and ensured that its products appeared in fixed positions within the top search results.
The investigation revealed that at least 64,000 of Coupang’s own products were subjected to this algorithm manipulation. Moreover, Coupang was found to have mobilized 2,297 employees to write positive reviews and assign high ratings to its PB products.
As a result, the KFTC has imposed a fine of 140 billion won on Coupang and issued an order to cease the use of the current algorithm. Coupang, however, has labeled the KFTC's decision as outdated and counterproductive to innovation, stating that it plans to challenge the ruling in court to prove its unfairness.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
