FTC looking into Coupang over bundled Wow membership benefits

The antitrust regulator is looking into e-commerce giant Coupang on allegations of unfairness over its bundling of Coupang Eats and Coupang Play.

Coupang's office building in Songpa District, southern Seoul [NEWS1]

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

The company has been 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 the Wow subscription by 58 percent to 7,890 won ($5.94) per month in April, and members have access to "exclusive benefits," such as free shipping, unlimited usage of over-the-top services and free food delivery.

Rep. Kim Nam-geun of the liberal 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 price issues, but we will review whether such practices constitute a violation of the rules on monopolies," Han said.

Yonhap