Coupang under antitrust regulator’s probe over service bundling allegations

The antitrust regulator said Monday that it is looking into e-commerce giant Coupang Inc. regarding allegations that it has unfairly bundled its food delivery service and music streaming platform while raising membership fees.

The company was accused of providing the Coupang Eats and Coupang Play services with its paid Wow membership without additional charges, in violation of the fair transaction law.

“We’ve received a complaint regarding the practice, and we are looking into the case,” Fair Trade Commission (FTC) chief Han Ki-jeong told a parliamentary session.

“We will swiftly conduct the investigation and take due steps if there is any violation,” he added.

Coupang jacked up the price of its Wow paid membership service by 58 percent to 7,890 won ($5.94) per month in April, and the members are allowed to use “exclusive benefits,” such as free shipping, unlimited over-the-top service and free food delivery.

Rep. Kim Nam-geun of the main opposition Democratic Party claimed during the session that Coupang uses its dominant market position to drastically increase the membership fee and charge small-scale sellers a high commission.

“The government cannot be directly involved in such price issues, but we will review whether such practices constitute a violation of the rules on monopolies,” Han said.