FTC to move forward with sanctions on delivery platforms over alleged unfair market practices

The antitrust watchdog said Monday 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, 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.

Earlier, the FTC had issued recommendations for corrective action against Coupang Eats’ practice of charging commissions based on pre-discount prices.

The watchdog also took issue with 10 types of unfair terms found in both Baemin and Coupang Eats’ contracts, such as limiting store exposure based on delivery distance.