Korean e-commerce giant Coupang under antitrust investigation over allegations of bundling services

Coupang headquarters in Songpa District, Seoul / Newsis

The competition regulator said on Monday it was investigating e-commerce giant Coupang over allegations it fraudulently bundled its food delivery service with a music streaming platform while raising membership fees.

The company was accused of providing Coupang Eats and Coupang Play services as part of a paid Wow membership at no additional charge, in violation of the Fair Transactions Act.

“We have received a complaint about this practice and are investigating the matter,” Han Ki-jeong, head of the Fair Trade Commission (FTC), told a parliamentary session.

“We will promptly investigate and take appropriate action if any violation occurs,” he added.

In April, Coupang raised the price of its paid Wow membership service by 58 percent to 7,890 won ($5.95) per month. Members can now enjoy “exclusive benefits” like free shipping, unlimited OTT service, and free food delivery.

Representative Kim Nam-geun of the main opposition Democratic Party of Korea claimed during the session that Coupang is using its dominant position in the market to drastically increase membership fees and charge high commissions to small sellers.

“The government cannot be directly involved in such pricing issues, but we will investigate whether such practices violate monopoly rules,” Han said. (Yonhap)