Coupang Hit with USD 220 Million Fine: What Went Wrong?

South Korea has fined Coupang USD 220 million for allegedly abusing its dominance in the food delivery market. Rival platform Baemin also faces penalties over similar restrictions on restaurants.
Coupang-Hit-with-USD-220-Million-Fine-What-Went-Wrong.
Written By:
Akshita Pidiha
Reviewed By:
Vijay Laxmi
Published on: 
Updated on: 

South Korea's antitrust regulator has fined e-commerce giant Coupang 300.9 billion won (USD 220.59 million) for abusing its dominant position in the country's food delivery market. The Korea Fair Trade Commission (FTC) said the company pressured restaurants to match prices, discounts and other conditions offered on competing delivery platforms.

The regulator said Coupang restricted restaurants' ability to set independent business terms. It also found that the company's practices weakened competition among food delivery services.

The penalty targets Coupang's food delivery business, Coupang Eats. The FTC said restaurants faced the loss of special membership benefits if they refused to follow the platform's requirements.

Also Read: South Korea's Ruling Party Proposes Crypto Tax Delay Pending New Digital Asset Law

FTC Flags Coupang's Restrictions on Restaurant Partners

According to the regulator, Coupang required restaurants to follow six conditions. These covered menu prices, minimum order values, discounts, delivery charges and other trading terms.

Restaurants that failed to comply risked losing their Wow Store status. The designation allowed them to offer discounts and free delivery to customers enrolled in Coupang's paid Wow membership program.

The FTC said the share of restaurants meeting these requirements increased from around 13% in July 2023 to nearly 94% in October 2025. It argued that the arrangement limited merchants' freedom to offer better deals through rival platforms.

Coupang rejected the regulator's assessment and described the penalty as excessive. The company also challenged the FTC's method of calculating the fine, arguing that it included revenue unrelated to the alleged violations. Coupang said it would challenge the decision through legal proceedings.

Baemin Also Faces Heavy Penalty Over Similar Practices

The FTC also imposed a 331.1 billion won fine on Woowa Brothers, the operator of rival delivery platform Baemin. The regulator accused the company of imposing similar conditions on restaurant partners to restrict competition.

Baemin also faced additional penalties for allegedly pushing restaurants towards its own delivery service. The FTC said the platform reduced the visibility of restaurants using independent delivery arrangements. It also questioned how the company displayed estimated delivery times.

Together, the penalties against Coupang and Woowa Brothers total 631.9 billion won (USD 463 million). The regulator said the action aims to improve competition and protect restaurants' pricing freedom.

The latest decision adds to Coupang's regulatory challenges in South Korea. The company previously received a 624 billion won fine over a data breach affecting more than 33 million customers.

Also Read: How Marc Lore, Founder of Wonder, is Transforming Food Delivery with AI and Robotics

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