Fair Trade Commission Probes Online Platform Merchant Damage

The Fair Trade Commission announced plans to investigate transaction terms and unfair practices between major online platforms and their merchants from August 13 to November 12. This three-month study aims to provide baseline data to resolve disputes arising from the rapid growth of the platform economy and to inform the development of more effective policies.

The investigation comes as disputes over online platforms have surged, with the number of cases handled by the Korea Fair Trade Mediation Agency rising from 103 in 2021 to 445 in the previous year. The commission will focus on major platform operators such as Baemin, Coupang Eats, Coupang, Gmarket, 11st, and Yeogi Eottae, examining competitive landscapes and transaction practices, particularly since their 2022 fact-finding survey.

The investigation will delve into the level of costs merchants face, including commissions and advertising fees, as well as specific cases of damage experienced during transactions and their experiences with mediation and resolution. Through this, the commission intends to quantify the practical difficulties faced by merchants. In addition, the commission will verify operating conditions of platform operators through a written survey, collecting comprehensive data on commission and advertising fee calculation standards, operating status, data-related policies, and internal dispute-resolution procedures.

By comparing merchants' survey responses with information provided by platform companies, the commission aims to enhance the objectivity of its findings. The Fair Trade Commission hopes that the survey's results will serve as a basis for developing a fair trade order in the online platform market.