Coupang Eats Seeks FTC Consent Decree Again Over Pricing Allegations

Coupang Eats, facing potential sanctions from the Fair Trade Commission (FTC) over accusations of forcing merchants to align food prices with competitors, has once again sought a consent decree. This move signifies the company's intention to devise its own measures for mutual growth rather than undergoing a formal judgment on its alleged illegal practices.

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The company's application for the consent decree process was submitted to the FTC in April, marking its second attempt after a similar request last year.

The company's application for the consent decree process was submitted to the FTC in April, marking its second attempt after a similar request last year. A consent decree allows a company to propose and implement its own corrective actions, such as consumer damage relief and restoration, which, if approved by the regulatory body, can lead to the closure of the case without a formal ruling on the alleged violations.

Both Coupang Eats and its rival Baemin have been under scrutiny for allegedly compelling partner merchants to set food prices on their platforms at or below those offered on competing apps. Failure to comply reportedly resulted in disadvantages, such as reduced visibility within the delivery apps. The FTC views this 'most-favored-nation' clause as a primary driver of reduced competition among delivery apps and a contributor to rising service fees.

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A consent decree allows a company to propose and implement its own corrective actions, such as consumer damage relief and restoration, which, if approved by the regulatory body, can lead to the closure of the case without a formal ruling on the alleged violations.

While the FTC had been expected to finalize its decision on sanctions against Coupang Eats in the first half of the year after concluding its review and gathering feedback, the company's latest consent decree application is likely to postpone this process. The acceptance of a consent decree requires deliberation and approval from the commission. If initiated, a provisional self-remedy plan would be drafted, followed by a public comment period involving stakeholders and relevant agencies. Only after incorporating feedback and receiving final approval from the commission would the consent decree be established.

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The FTC views this 'most-favored-nation' clause as a primary driver of reduced competition among delivery apps and a contributor to rising service fees.

Last April, Coupang Eats' initial consent decree application was suspended by the FTC in November due to a lack of concrete mutual growth plans, prompting the commission to resume its sanction proceedings. This renewed application underscores the ongoing efforts by Coupang Eats to navigate regulatory challenges through proactive, self-directed solutions.

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Last April, Coupang Eats' initial consent decree application was suspended by the FTC in November due to a lack of concrete mutual growth plans, prompting the commission to resume its sanction proceedings.