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[SITUATION] · [ACTIVE] · [BUSINESS]
4 clusters · 62 sources · 16 days · First seen · Last updated
South Korean regulatory enforcement against major firms
Overview
South Korean regulators have taken actions against several major corporations regarding market competition and consumer transparency. Joo Byung-ki, Chairperson of the Fair Trade Commission (FTC), proposed legislative changes to increase enforcement power. He suggested that companies refusing administrative investigations should face fines of up to 1% of total annual revenue, rather than minor administrative fines. This proposal follows Coupang’s refusal to cooperate with an investigation into the Large-Scale Retail Business Act. Joo characterized the company as a “heavyweight” whose market power could act as a “weapon” against small business owners.
In a significant escalation, the FTC imposed a record combined fine of 631.9 billion won on Woowa Brothers, the operator of Baemin, and Coupang, the operator of Coupang Eats. The regulator determined that the two platforms, which control approximately 92.89 percent of the food delivery market, abused their dominant positions to restrict competition. The FTC found that both companies used most-favored-nation requirements to pressure restaurants into offering terms, such as menu prices, that were at least as favorable as those on competing apps. Baemin was also sanctioned for manipulating its app interface to favor its own delivery service, while Coupang was cited for calculating brokerage fees based on pre-discount prices.
Both companies intend to challenge the decision through administrative litigation. Coupang argued the penalty was excessive, while Baemin maintained its practices were necessary defensive measures.
In separate regulatory actions, the Korea Media and Communications Commission (KMCC) fined Google and Apple a combined 63.7 billion won for violating telecommunications laws. The KMCC also issued a further fine of approximately 20.81 billion won against Apple. Additionally, the FTC fined Samsung Electronics approximately 20.1 billion won for deceptive advertising and fined Celltrion 630 million won for violating the Fair Transactions in Subcontracting Act.
Entities
Fair Trade Commission · South Korea · Google · Coupang · Korea Media and Communications Commission
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 15 SOURCES] The KFTC decided to impose a total fine of 631.9 billion won on Baemin and Coupang Eats. zdnet.co.kr · www.hani.co.kr · www.seoul.co.kr · sateconomy.co.kr · www.hidomin.com · +10 more
- [● 14 SOURCES] The KMCC fined Google 42.9 billion won and Apple 20.8 billion won for app store payment violations.
- [● 14 SOURCES] Google and Apple were found to have restricted developers' choice of payment systems by imposing high commissions on third-party options.
- [● 14 SOURCES] Baemin required merchants to provide most-favored-nation terms regarding menu prices, minimum order amounts, and discount benefits. zdnet.co.kr · www.hani.co.kr · www.seoul.co.kr · sateconomy.co.kr · www.hidomin.com · +9 more
- [● 13 SOURCES] Coupang Eats required merchants to set six major transaction conditions to be equal to or more favorable than competitors. zdnet.co.kr · www.hani.co.kr · www.seoul.co.kr · sateconomy.co.kr · www.sisajournal.com · +8 more
- [● 12 SOURCES] The Fair Trade Commission imposed a fine of approximately 20.14 billion won on Samsung Electronics.
- [● 12 SOURCES] Samsung advertised high gaming performance for Galaxy S21, S22, and Tab S8 series between January 2021 and March 2022.
- [● 12 SOURCES] The Game Optimizing Service (GOS) limited CPU and GPU speeds regardless of device temperature during specific games.
- [● 12 SOURCES] The FTC determined Samsung's actions constituted deceptive advertising under the Fair Labeling and Advertising Act.
- [● 12 SOURCES] Google and Apple applied a 26% commission to third-party payment methods.
- [● 8 SOURCES] Baemin reduced the visibility of its Store Delivery service on the app to promote its Self-Delivery service. zdnet.co.kr · www.hani.co.kr · sateconomy.co.kr · www.hidomin.com · www.sisajournal.com · +3 more
Timeline
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[BUSINESS] 15 sourcesSouth Korea fines Baemin and Coupang Eats 631.9 billion won
South Korea's FTC imposed a record 631.9 billion won fine on Baemin and Coupang Eats for abusing market dominance and imposing unfair most-favored-nation terms on restaurants.
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[TECHNOLOGY] 10 sourcesSouth Korea fines Google and Apple for app store payment violations
South Korea has fined Google and Apple approximately 47.6 million USD for forcing developers to use their proprietary in-app payment systems and for opaque app review processes.
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[BUSINESS] 43 sourcesSouth Korea fines Google, Apple, and Samsung for regulatory violations
South Korea has fined Google and Apple 63.7 billion won for in-app payment restrictions and Samsung 20.1 billion won for deceptive gaming performance advertising.
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[BUSINESS] 3 sourcesSouth Korean FTC Chair proposes fines for investigation refusals
South Korean FTC Chair Joo Byung-ki proposes imposing fines of up to 1% of total revenue on companies that refuse administrative investigations to ensure effective law enforcement.
Sources
androidcentral.com · asiainfonews.com · bhaskarlive.in · biz.heraldcorp.com · brif.mk · businessmag.al · cafebiz.vn · cmjornal.xl.pt · de.euronews.com · deccanchronicle.com · es.euronews.com · etailment.de · europesays.com · fehmarn24.de · finance.technews.tw · forux.it · hani.co.kr · hardware.com.br · hidomin.com · impala.pt · indeksonline.rs · independent.co.uk · ininsubria.it · invenglobal.com · iphoneworld.com.es · it-boltwise.de · ithome.com · javanews.al · koreaherald.com · kyeonggi.com · laikas.lt · latestly.com · macdailynews.com · malatyaguncel.com · meeco.kr · merkur-online.de · moncloa.com · negarmag.com · negocios.com · news.az · newstomato.com · oficinadanet.com.br · phonandroid.com · pisapapeles.net · raillynews.com · rbfirehose.com · revistaoutside.com · sateconomy.co.kr
This summary has been updated 5 times: see revision history