As the government pushes to revise the Fair Trade Act to recognize joint negotiations by small business owners and small and medium-sized enterprises as an exception to collusion regulations, changes are expected in the relationships between delivery platforms and onboarded merchants. If the bill takes effect, onboarded merchants on Baemin and Coupang Eats are expected to gain a path to negotiate collectively not only over commissions but also over advertising costs, settlement cycles, terms changes, exposure algorithms, and overall transaction terms.
According to the platform industry on the 3rd, the Korea Fair Trade Commission reported the "plan to overhaul the system to strengthen the bargaining power of the weaker party" at the Cabinet meeting on the 30th. The Korea Fair Trade Commission (FTC) decided to push for a legal revision so that even if small businesses and small business owners conduct joint negotiations with large or mid-sized companies, it will not be deemed collusion under the Fair Trade Act.
Under the amendment, if all negotiation participants are small businesses and small business owners, the application of collusion rules is exempted immediately upon notifying the Korea Fair Trade Commission (FTC) of the participants, counterparties, and the content of the negotiations. The effect lasts for five years. Information exchange and agreements on prices and transaction terms, transaction volumes, and transaction regions, as well as collective actions such as joint refusals to supply, are permitted.
However, bid rigging is excluded, and the Korea Fair Trade Commission (FTC) can issue a prohibition order or temporary suspension order if it determines that consumer harm is significant.
President Lee Jae-myung also emphasized at the Cabinet meeting that "it is important to guarantee solidarity while preventing it from being abused as collusion." The Korea Fair Trade Commission (FTC) likewise said it would prepare mechanisms to halt collective action if serious side effects occur, such as a significant rise in consumer prices.
◇"Need detailed standards that reflect industry-specific transaction structures"
Until now, delivery apps and onboarded merchants signed individual contracts, which limited store owners' bargaining power. A social dialogue body for delivery apps operated last year, but its practical impact was limited due to divergent interests among participating groups and a lack of representativeness and binding force.
In the industry, there is a view that once the system is implemented, the scope of negotiations will not be limited to simply demanding commission cuts. There are concerns that terms changes, free delivery policies, advertising product overhauls, and exposure algorithm changes could also be added to the negotiation agenda. The argument is that confusion will be inevitable if negotiation rights are broadly recognized without concrete standards in place.
A platform industry official said, "Delivery apps have hundreds of thousands of onboarded merchants, but there are still no criteria for which groups should be granted negotiation rights," adding, "If each group demands separate negotiations, negotiation expenses and management uncertainty could increase significantly."
The official added, "Onboarded merchants also differ in industry, size, and interests, so they may make different demands on the same issue," noting, "There is also a possibility that conflicts between groups will persist."
There are also concerns that this could clash with the principles of a market economy. A platform industry official said, "A structure in which a specific business group collectively negotiates the transaction price formed in the market is similar in some respects to consumers jointly asking a retailer to lower prices," adding, "If the platform's burden increases, it is hard to rule out the possibility that expenses will ultimately be passed on in other forms, such as higher consumer prices, increased delivery fees, or reduced marketing."
Experts agreed with the policy direction of protecting small business owners, but said the system should be designed with sufficient consideration of industry-specific characteristics. Lee Jong-woo, a professor in the Department of Distribution and Marketing at Namseoul University, said, "The overall direction of improving unequal relationships is necessary, but transaction structures differ across industries, including not only platforms but also distribution and online commerce," adding, "Rather than applying the system uniformly, it would be desirable for the government to establish an institutional foundation for negotiations and allow negotiations to take place autonomously in a way that reflects industry-specific characteristics."
Lee added, "This is not just a platform issue; it could expand to nearly all industries that transact with small business owners, such as Naver Shopping and retailers, so sufficient social debate and detailed standards should come first."