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Coupang Tops FTC Fines: How E-Commerce Giant Faces Antitrust Scrutiny

Coupang has emerged as the top recipient of Fair Trade Commission fines among Korean conglomerates over the past three years. The e-commerce giant was penalized 162.8 billion won primarily for manipulating search algorithms to boost its product rankings. The report reveals that top 10 conglomerates collectively violated antitrust laws 243 times during this period. The FTC is now preparing to impose sanctions on major food delivery platforms for alleged unfair market practices.

Key Points: Coupang FTC Fines Expose Korean Conglomerate Antitrust Challenges

  • Coupang fined 162.8 billion won for search algorithm manipulation
  • Top 10 conglomerates violated antitrust laws 243 times
  • Hyundai Motor Group follows with 119.4 billion won in fines
  • Food delivery platforms face potential sanctions for unfair practices
2 min read

Coupang tops FTC fine among Korean conglomerates over past 3 years

Coupang leads Korean conglomerates in FTC fines, revealing complex antitrust landscape and market manipulation concerns

"The investigations into violations such as forcing bundle sales are nearly complete - Kim Moon-sik, FTC Senior Official"

Seoul, Oct 19

Coupang, a leading e-commerce company in South Korea, has received the largest amount of fines from the Fair Trade Commission (FTC) among conglomerates over the past three years, a parliamentary report showed on Sunday.

According to the report compiled by the FTC and submitted to Rep. Choo Kyung-ho of the main opposition People Power Party, Coupang was fined a total of 162.8 billion won (US$114.3 million) from the first half of 2022 to the first half of this year, reports Yonhap news agency.

Last year, the FTC imposed the fine on the company for manipulating search algorithms to boost the "Coupang ranking" of its private-label and directly purchased products.

Top carmaker Hyundai Motor Group followed with cumulative fines of 119.4 billion won, trailed by poultry-processing company Harim Group with 101.6 billion won and SK Group with 64.5 billion won.

The top 10 conglomerates were fined a combined 744.6 billion won during the three-year period.

Hyundai Department Store Group recorded the highest number of violations, 38 in total, mostly due to multiple collusion cases involving its furniture affiliate Hyundai Livart Furniture.

Hanssem Co. came next with 33 violations, followed by SK Group with 31 and Enex Co. with 28.

Altogether, the top 10 companies violated antitrust law 243 times over the cited period.

Meanwhile, the antitrust watchdog said last week it will soon begin the process of imposing sanctions on two major food delivery platforms over alleged unfair market practices, after the companies failed to voluntarily submit adequate corrective measures.

The move comes after Woowa Brothers Corp., the operator of Baedal Minjok also known as Baemin, and Coupang Eats have not presented sufficient co-prosperity or corrective plans for more than six months regarding various unfair contract clauses amid the investigation, according to the Fair Trade Commission (FTC).

"The investigations into violations such as forcing bundle sales are nearly complete," said Kim Moon-sik, a senior official at the FTC, adding that it plans to refer the case to the full commission meeting soon.

- IANS

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Reader Comments

R
Rohit P
₹950 crore fine for Coupang! That's massive. Shows how serious these violations are. In India, we see similar practices where big platforms promote their own products over smaller sellers. Hope our regulators are watching.
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Aditya G
While I appreciate the strict action, I wonder if these fines are enough deterrent for companies making billions. The penalty should hurt their profits significantly to actually change behavior.
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Sarah B
As someone who lived in Korea, Coupang's delivery service is amazing but this news doesn't surprise me. Big tech everywhere needs checks and balances. Good to see regulators doing their job properly.
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Karthik V
Hyundai, SK Group also in the list! These are major global companies. Goes to show that no corporation is above the law when regulators are serious about enforcement. 👍
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Nisha Z
243 violations by just 10 companies in 3 years! That's almost one violation every 4-5 days. These corporations clearly have a systemic problem with following rules. Time for stricter consequences beyond just fines.

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