The Korea Fair Trade Commission has begun an on-site probe to see whether Coupang abused its monopolistic dominance over marketplace sellers, according to reports on the 1st.
According to the industry and others that day, the Korea Fair Trade Commission (FTC) dispatched a Researcher to Coupang's headquarters in Gwangjin-gu, Seoul, and the case is under investigation for suspected violations of the Fair Trade Act. The Fair Trade Act prohibits engaging in a transaction by unfairly using a superior position in trade.
On the 19th, the Korea Fair Trade Commission (FTC) sought to investigate Coupang for alleged violations of the Act on Fairness in Large Franchise and Retail Business in connection with suspicions that it passed discount expenses on to suppliers. But Coupang rejected the probe, saying the Framework Act on Administrative Investigations requires administrative agencies to give written notice of the schedule at least seven days before an on-site investigation. On the 21st, it even filed a lawsuit seeking to block the execution of the on-site investigation decision and disposition. The Korea Fair Trade Commission (FTC) then withdrew the investigation at that time.
This time, the Korea Fair Trade Commission (FTC) launched a reinvestigation of Coupang by applying alleged violations of the Fair Trade Act, which does not impose a written-notice obligation under the Framework Act on Administrative Investigations. The Fair Trade Act applies to relations between Coupang and marketplace sellers, while the Act on Fairness in Large Franchise and Retail Business applies to relations between Coupang and suppliers. With the supplier investigation blocked, the plan now is to examine whether Coupang engaged in unfair practices against marketplace sellers.
Meanwhile, the court is set to hear from both the Korea Fair Trade Commission (FTC) and Coupang on the 2nd. A court decision on Coupang's application for an injunction to stay execution is expected within this month.