Business · Companies · 12 hrs ago

South Korea fines Baedal Minjok and Coupang Eats over competition rules

South Korea fines Baedal Minjok and Coupang Eats over competition rules

South Korea fined Baedal Minjok and Coupang Eats a combined 631.9 billion won, about 331.1 billion and 300.8 billion won respectively.

The Fair Trade Commission said the food delivery platforms used benefits to demand equal terms from restaurants across rival apps, restricting competition over prices and fees.

Baedal Minjok is operated by Woowa Brothers, while Coupang Eats is run by Coupang.

Both companies say they did not break the law and plan to review the regulator's final written decision before choosing their next steps.

Coupang Eats also disputes how its fine was calculated, while Baedal Minjok faces penalties over reducing the visibility of some restaurant listings and displaying inaccurate delivery estimates.

The fines are the largest combined penalty in a delivery-app case by South Korea's regulator; a separate allegation that Coupang bundled its Wow membership with the service will be reviewed again.

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What people are saying

Woowa BrothersBaemin operator
We have sincerely explained that there was no illegality in this matter.
via Yonhap
Coupang EatsDelivery app operator
At the time the policy was introduced, our market share was only 7% as a latecomer, and there were no cases in which a contract was terminated because a store owner failed to meet the price conditions.
via Yonhap