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Photo = Coupang |
[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) conducted an on-site investigation at Coupang’s headquarters in Songpa-gu, Seoul, on May 22, probing allegations that Coupang engaged in unfair bundling practices by including Coupang Play within its WOW Membership.
Coupang offers an integrated membership service, combining offerings such as Coupang Play (video streaming) and Coupang Eats (food delivery) under the WOW Membership. Civil society groups, including the People’s Solidarity for Participatory Democracy, filed complaints with the KFTC last year, arguing that the integrated membership restricts competition across multiple markets.
Under the Fair Trade Act, ‘tying’—the practice of coercing customers to purchase additional products or services when buying a particular good—is classified as an unfair trade practice and prohibited.
In response, the KFTC has recently established a dedicated task force to expedite investigations related to food delivery app markets, signaling increased enforcement speed. While typical investigations into tying or abuse of market dominance can take two to three years, growing concerns over the worsening financial situation of small business owners and the burden of delivery app fees have prompted the KFTC to act more swiftly.
Previously, the KFTC also conducted on-site investigations into allegations against Baemin (Woowa Brothers) for unfair practices related to preferential treatment demands and the abolition of the ‘Ultra Call’ advertising program.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
