Coupang appeals record $121 million fine for alleged search manipulation

Coupang has filed an appeal against the Fair Trade Commission’s (FTC) 162.8 billion won ($121 million) fine imposed earlier this year for alleged manipulation of search results and reviews.

Nasdaq-listed online marketplace Coupang's headquarters in Songpa District, southern Seoul in August [NEWS1]

Coupang has filed an appeal against the Fair Trade Commission’s (FTC) 162.8 billion won ($121 million) fine imposed earlier this year for alleged manipulation of its search results and reviews.

Coupang Private Label Brands (CPLB), a subsidiary of Coupang, submitted an administrative litigation to the Seoul High Court on Sept. 5, requesting that the FTC’s decision be overturned and the fine be rescinded, according to local reports Tuesday.

Coupang said it would “present its arguments to the court appropriately and accept the judgment” in a statement.

On July 7, the FTC sent a resolution to Coupang outlining the sanctions. The agency reportedly instructed Coupang to cease manipulating algorithms for search results on its site, using employee reviews to unfairly favor its private brand (PB) products and employing unlawful tactics to drive purchases.

PB products are items independently produced by large retailers, typically sold at lower prices than other brands on the market.

The FTC initially fined Coupang a record-high 140 billion won in June. This amount was increased to 162.8 billion won in July after the agency found that Coupang had continued its illegal practices until June this year, extending beyond the initially calculated period from early 2019 to July of last year.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]