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Photo = Fair Trade Commission |
[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) has launched an investigation into whether Baemin’s decision to terminate its fixed-rate advertising product, Ultra Call, constitutes a violation of the Fair Trade Act.
According to industry sources on Monday, the KFTC is examining whether the discontinuation of Ultra Call constitutes an abuse of transaction superiority, which is prohibited under the Fair Trade Act. This investigation follows a complaint filed by the civic group People’s Solidarity for Participatory Democracy (PSPD) on March 12, alleging Baemin’s violation of the law.
Ultra Call is a fixed-rate advertising service that allows restaurants to purchase a "flag" for preferential exposure in a specific area for a monthly fee of KRW 88,000. Baemin has decided to phase out this service starting April 1, citing concerns that excessive flag placements have led to cutthroat competition among restaurant owners.
However, Baemin has made it mandatory for restaurant owners to switch to Open List, a commission-based advertising system that deducts 6.8% from the order amount, in order to continue using the platform's store-delivery service.
Restaurant owners argue that being forced to adopt the commission-based system constitutes an unfair disadvantage, which is prohibited under the Fair Trade Act. Baemin’s delivery services are divided into store delivery, where the restaurant handles the delivery, and Baemin delivery, where Baemin provides the delivery service.
PSPD further claims that these changes violate the Act on the Regulation of Terms and Conditions, as Baemin is unilaterally altering contract terms unfavorably for merchants without any fault on their part and threatening contract termination for non-compliance.
Additionally, the KFTC is reportedly investigating allegations that Baemin has modified its application’s user interface (UI) to favor Baemin delivery over store delivery.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
