Monitor this situation.

Unsubscribe anytime.

[SITUATION] · [ACTIVE] · [BUSINESS]

2 clusters · 6 sources · 6 days · First seen 7 days ago · Last updated about 19 hours ago

South Korean delivery app fee disputes

Overview

Small business owners in South Korea are reporting significant financial strain due to delivery app fees. A survey by the Korea Federation of SMEs found that transaction costs for these merchants can exceed 26% of monthly revenue, with some businesses spending as much as 45%. Respondents indicated that existing commission systems are largely ineffective, leading to calls for a total commission cap and the enactment of an Online Platform Fairness Act.

In response to these pressures, the South Korean Fair Trade Commission (FTC) has signaled its intent to pursue legislation aimed at lowering delivery app commissions and advertising fees. FTC Chairperson Joo Byung-gi noted that the delivery app market has reached saturation and criticized the excessive burden placed on merchants.

Additionally, the FTC is seeking to strengthen its oversight capabilities. The agency is considering regulatory amendments to prevent companies from using legal maneuvers to evade field investigations and plans to launch an Economic Analysis Bureau to address anti-competitive behaviors such as data monopolies and algorithmic self-preferencing.

Entities

Joo Byung-gi · Naver · Coupang · Fair Trade Commission · Dunamu

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 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 total burden on merchants using delivery apps, including commissions and advertising fees, is currently excessive. zdnet.co.kr
[○ 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
[○ 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] A new Economic Analysis Bureau will launch next month to investigate data monopolies and algorithmic self-preferencing by platforms. zdnet.co.kr

Timeline

about 19 hours ago

[BUSINESS] 4 sources
South Korea FTC targets delivery app fees and investigation evasion
South Korea's FTC Chairperson Joo Byung-gi vows to curb excessive delivery app fees, prevent companies from evading investigations, and scrutinize major platform mergers like Naver and Dunamu.
7 days ago

[BUSINESS] 2 sources
South Korean small businesses face rising delivery app fees
Small business owners in South Korea face rising costs from delivery apps, with transaction fees now exceeding 26% of monthly revenue, prompting calls for stricter platform regulations.

Sources

biz.heraldcorp.com · english.hani.co.kr · hani.co.kr · kyeonggi.com · namdonews.com · zdnet.co.kr