Coupang fined 3.3 bln won for unfair biz practice

This photo shows the exterior of the Korea Fair Trade Commission in the central administrative city of Sejong. (Yonhap)

South Korea's antitrust regulator said Thursday it has decided to fine e-commerce giant Coupang Inc. 3.3 billion won ($2.8 million) for alleged unfair business practice.

Between 2017 and 2020, Coupang demanded its suppliers raise sales prices of products trading at its rival online malls if one-off sales promotion events drove down such prices, according to the Korea Fair Trade Commission (KFTC).

The company also pressed contractors to buy ads on its site and passed on the costs of sales promotion to suppliers in violation of the antitrust act and the large retailer law, according to the regulator.

Along with the fine, the KFTC ordered the company to take corrective measures.

The commission said it is meaningful to take stern actions against new types of unfair business activities in the online shopping market as the market dominance by e-commerce operators is growing.

Coupang expressed regret over the KFTC's decision, saying it plans to lodge an administrative suit against the measure. (Yonhap)