Baemin, Coupang Eats face $471mn fine over unfair pricing demands

South Korea’s two leading food delivery platforms, Baemin and Coupang Eats, face a record combined fine for allegedly forcing restaurants to offer prices and terms at least as favorable as those available on rival apps.

The Korea Fair Trade Commission (FTC) said Monday it would impose a combined 631.9 billion won ($471.25 million) in fines and corrective orders on Woowa Brothers Corp., operator of Baemin, and Coupang Inc., operator of Coupang Eats, for abusing their market dominance.

Woowa Brothers faces a fine of 331.1 billion won and Coupang one of 300.8 billion won.

The FTC found that Baemin and Coupang Eats, which together held a 92.89 percent market share as of last year, simultaneously demanded most-favored-nation (MFN) treatment from restaurants, producing effects similar to those of collusion.

The MFN requirements obliged restaurants to offer prices, minimum order amounts, and other terms on the two platforms at least as favorable as those available on competing apps. The practice prevented restaurants from offering better deals elsewhere, restricting price competition and potentially harming consumers.

Woowa Brothers and Coupang said they would review the FTC’s final written decisions before determining their responses, including whether to pursue legal action.

Coupang said the FTC had inflated the fine by including delivery revenue unrelated to the alleged violations in its calculation, adding that the process had undermined the company’s right to defend itself.