FTC to increase Coupang fine by $7.2 million: report

Coupang Office Building in Songpa District, southern Seoul (NEWS1)

The Korean antitrust agency will increase the record-high fine imposed on Coupang over alleged recent manipulation of its search algorithm by the New York-listed e-commerce giant.

Under the upcoming regulation, Coupang could be charged additional fees of 10 billion won ($7.2 million), on top of the 140 billion won fine already in place.

A spokesperson for the Fair Trade Commission (FTC) confirmed the increase but declined to say how much.

“It is certain that the final amount will be higher than previously announced because the initial announcement did not take into account activities that took place between August last year and June 5, the date of the deliberations,” the spokesman said.

The resolution will be sent to Coupang in July.

The company is outraged by the fine imposed by the antitrust authority and intends to appeal the decision to the court once it is finalized.

The company said in a statement filed with the U.S. Securities and Exchange Commission on June 16 that it was fined for a common industry practice.

“The KFTC announced in its decision, as part of a previously disclosed investigation, that Coupang’s ordering of searches — a practice consistent with all online retailers in Korea and around the world — is fraudulent and violates Korean law,” the company said in a summary of the events.

BY PARK EUN-JEE ([email protected])