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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, October 13 — South Korea’s Fair Trade Commission (FTC) has initiated disciplinary procedures against Coupang Eats and Baedal Minjok (Baemin) over allegations that they forced partner restaurants to offer “most-favored” pricing and engaged in illegal tying practices involving bundled services.
According to the FTC, a review report — equivalent to an indictment in criminal proceedings — was formally submitted to both companies on October 13. The report outlines the results of the FTC’s investigation and the proposed sanctions. The final decision on penalties will be made through a full commission meeting.
“Most-Favored Treatment” Allegations
Coupang Eats and Baemin are accused of requiring partner restaurants to match or undercut prices and promotions offered on competing delivery platforms, a practice deemed to violate the Fair Trade Act.
The FTC views such clauses as anti-competitive, arguing that they limit price competition between platforms and lead to higher commission fees for small businesses. The regulator launched a full-scale investigation into both firms last year.
Tying Practice Probe
The FTC also sent a separate review report to Coupang over alleged tying violations. The company is accused of bundling its Coupang Wow Membership with unrelated services — such as Coupang Play (OTT) and Coupang Eats “Alldeul” delivery discounts — effectively offering them for free to paying Wow subscribers.
Next Steps
Both Coupang Eats and Baemin had earlier applied for the consent decree process, under which companies can propose corrective measures to settle a case without admitting guilt. However, the FTC noted that the firms failed to submit sufficient or concrete improvement plans, causing the process to stall.
Each company will now review the proposed sanctions in the review report and decide whether to resume the consent decree process or contest the findings in a full commission hearing.
The FTC stated it would “collect additional written opinions from both companies before making a final decision on whether to impose sanctions.” The regulator also plans to complete ongoing investigations into other unfair trade practices by the two platforms and issue additional review reports if violations are confirmed.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
