On the 14th, it became known that the Fair Trade Commission began a review to issue a corrective order to Coupang Eats, which charges brokerage and payment fees based on the amount before discounts.
Earlier, the Korea Fair Trade Commission (FTC) recommended in Oct. that Coupang Eats correct the clause on the basis for fee imposition within 60 days. The reason was that by making partner merchants pay order fees based on the price before discounts, partner merchants have to shoulder a double burden of discount expense and fees.
When partner merchants issue coupons at their own expense and run discount promotions, they pay Coupang Eats a fee on the discount amount—which is not actual revenue generated—in addition to the expense loss from the discount. It is reported that Coupang Eats collects several tens of billions of won annually through this method.
The Korea Fair Trade Commission (FTC) determined that brokerage fees are compensation for services that broker a transaction and therefore should be imposed based on the actual transaction amount of the brokered item. It also viewed that payment fees should likewise be imposed based on the amount actually paid, in line with the substance of the transaction.
The Korea Fair Trade Commission (FTC) found that only Coupang Eats charges fees based on the price before discounts, while most delivery app operators such as Baemin and Yogiyo use the amount after discounts as the basis. Coupang, in its shopping mall (Coupang) business, charges fees based on the amount after discounts, unlike Coupang Eats.
However, Coupang Eats is reportedly not complying with the recommendation, saying it did not violate the Terms and Conditions Act.
An official at the Korea Fair Trade Commission (FTC) said, "We cannot officially confirm the review procedure," but added, "If a corrective recommendation under the Terms and Conditions Act is not implemented, it can move to the corrective order stage."