South Korea Announces 631.9 Billion Won Delivery App Fines

South Korea’s Fair Trade Commission announced provisional fines totaling 631.9 billion won against Coupang and Woowa Brothers, saying their food-delivery platforms restricted restaurants’ ability to set prices and terms on competing services. The penalties are 300.8 billion won for Coupang, which operates Coupang Eats, and 331.1 billion won for Woowa Brothers, operator of Baemin. The commission also ordered corrective measures.

The regulator said both companies required partner restaurants to offer terms on their platforms at least as favorable as those available elsewhere. Restaurants that did not comply risked losing access to membership-linked programs offering customers delivery benefits and participating businesses greater visibility. The commission said the requirements weakened competition between platforms and constrained restaurants’ pricing and promotional choices.

Coupang’s requirements took effect in July 2023 and covered terms including menu prices, minimum orders, discounts and delivery charges, according to the commission. Restaurants risked losing their status in Coupang’s Wow program if they did not meet them. The regulator said the share of restaurants meeting...