South Korea's Fair Trade Commission announced Monday it will fine Woowa Brothers, operator of the Baemin delivery app, 331.1 billion won and Coupang 300.8 billion won for abusing dominant market positions in food delivery. The combined 631.9 billion won penalty is among the largest antitrust actions the regulator has taken against consumer internet platforms.
Parity clauses at the center
Investigators said Baemin and Coupang Eats required partner restaurants to offer discounts, commissions or benefits at least as favorable as those listed on competing platforms. The FTC argued the parity clauses prevented eateries from steering customers toward cheaper channels and locked in the two apps' joint dominance after years of consolidation.
Both companies command the majority of meal-delivery orders in metropolitan Seoul and in secondary cities, leaving independents with little bargaining power when negotiating commission rates or promotional subsidies. Regulators said the clauses effectively barred restaurants from running deeper discounts on smaller rivals even when those rivals charged lower fees.
How the fines break down
The 331.1 billion won assessment against Woowa Brothers reflects what the FTC described as prolonged enforcement of most-favored-customer terms across Baemin's national merchant base. Coupang's 300.8 billion won fine targets similar contract language applied through Coupang Eats, the grocery giant's restaurant vertical.
The commission did not immediately publish compliance orders Monday beyond announcing the monetary penalties, but officials told reporters the decision is intended to spur contract revisions before year-end peak delivery season. Neither company issued a detailed public response in the first hours after the announcement.
Impact on restaurants and riders
Restaurant associations have long argued that parity clauses squeeze already thin margins, especially after inflation pushed food costs higher in 2025 and 2026. If the FTC forces platforms to drop parity language, merchants could run channel-specific promotions—though they would still face commission floors negotiated individually with each app.
Delivery riders, many of whom work as gig contractors, are watching whether savings flow to consumers or to platform marketing budgets. Past FTC actions against Coupang's retail unit triggered compliance monitors but did not reset market share; analysts said Monday's food-delivery ruling could nonetheless embolden smaller entrants such as regional startups and grocery chains experimenting with in-house dispatch.
What regulators signal next
The penalties arrive as President Lee Jae Myung's government emphasizes consumer protection and as the National Assembly debates platform-fairness bills. The FTC has separate proceedings open against other tech firms, signaling that Monday's fines are part of a broader push to curb most-favored-nation clauses across Korean e-commerce.
Companies have a limited window to appeal before penalties are due, and the commission may seek follow-up audits to verify contract changes. For now, the announcement resets the price war narrative: regulators are telling Baemin and Coupang Eats that duopoly power cannot be reinforced through boilerplate restaurant contracts.