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South Korea FTC targets delivery app fees and investigation evasion
At a one-year press conference, Fair Trade Commission (FTC) Chairperson Joo Byung-gi addressed several critical regulatory challenges. He expressed regret over recent court decisions that suspended field investigations into companies like Coupang, stating that such stays effectively neutralize the agency's ability to conduct meaningful oversight. To counter this, the FTC is considering regulatory amendments to prevent companies from using legal maneuvers to evade investigations.
Addressing the digital economy, Joo criticized the excessive burden of commissions and advertising fees imposed by delivery apps on merchants. He signaled intent to pursue legislation to lower these costs, arguing that the delivery app market has reached a state of saturation. Furthermore, the FTC plans to launch an Economic Analysis Bureau next month to tackle sophisticated anti-competitive behaviors, such as data monopolies and algorithmic self-preferencing.
Regarding corporate mergers, the FTC is conducting a rigorous review of the proposed combination between Naver and Dunamu, citing potential competition risks across ten different markets. Finally, Joo refuted claims from U.S. political figures regarding discriminatory treatment of American firms, asserting that the FTC has maintained non-discriminatory enforcement for over 25 years without formal complaints from international competition authorities.
Entities
Coupang · Dunamu · Fair Trade Commission · Joo Byung-gi · Naver
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The total burden on merchants using delivery apps, including commissions and advertising fees, is currently excessive. zdnet.co.kr
- [○ 1 SOURCE] A new Economic Analysis Bureau will launch next month to investigate data monopolies and algorithmic self-preferencing by platforms. zdnet.co.kr
- [○ 1 SOURCE] The FTC's investigation into Coupang has been effectively neutralized due to a court decision suspending the field investigation for approximately 30 days. biz.heraldcorp.com
- [○ 1 SOURCE] The FTC denies allegations from U.S. politicians that it discriminates against American companies like Coupang, noting no such complaints from foreign regulators in 25 years. biz.heraldcorp.com
- [○ 1 SOURCE] The FTC is considering regulatory amendments to prevent companies from using legal stays to avoid field investigations. biz.heraldcorp.com
- [○ 1 SOURCE] The FTC is conducting a cautious review of the merger between Naver and Dunamu due to potential competition restrictions across 10 related markets. zdnet.co.kr