The Fair Trade Commission on the 29th designated Coupang Inc. Chairman Kim Bom-seok as Coupang’s controlling shareholder. The photo shows Coupang’s headquarters. Yonhap News
The Fair Trade Commission (FTC) is expected to bring two fair trade law violation cases involving Coupang, including alleged membership tying, to its plenary session as early as next month.
Both cases involve potential fines in the 100 billion won ($73 million) range, drawing significant attention to the upcoming rulings.
According to industry sources on Tuesday, the FTC plenary session is coordinating schedules to review Coupang’s alleged “membership tying” and Coupang Eats’ demands for “most-favored treatment” from merchants on its platform. Examination reports for both cases have already been delivered to Coupang, and the company has submitted its response reports. Only the deliberation procedure remains internally. The plenary session functions as an independent collective decision-making body within the FTC and can be viewed as a special court handling fair trade law violations.
If the plenary session finds Coupang in violation of fair trade laws, the fines are expected to reach the 100 billion won range. The key issue in the membership tying case is whether Coupang restricted market competition by bundling other services such as video streaming and food delivery with its paid “WOW Membership” program. The Coupang Eats case centers on whether the company imposed favorable trading terms on merchants listed on its platform. In both cases, if the FTC determines that Coupang, as a market-dominant operator, abused its position, it could impose fines of up to 6 percent of related sales.
However, the FTC may choose to pursue a consent decree instead of proceeding with a plenary review. Under the consent decree system, if a company voluntarily proposes remedial measures and victim relief plans, the FTC can close the case without determining whether a violation occurred.
Coupang is reportedly in discussions with the FTC on a mutual cooperation plan. The company has also reportedly expressed its willingness to participate in the “social dialogue body” currently being discussed with the National Assembly. However, progress has been slow due to Coupang’s passive approach to participation. A lawmaker from the Democratic Party’s “Committee for Protecting the Underdog (Euljiro Committee)” said, “Two social dialogue bodies related to delivery apps and parcel services are currently being operated concerning Coupang, but discussions have stalled because Coupang has not properly participated.”