Coupang’s refusal to cooperate with FTC probe raises eyebrows in Korea

According to sources in the Korean business world, Coupang's refusal to cooperate with investigators from the Fair Trade Commission (FTC) has shocked the industry. The e-commerce giant has taken legal action against the FTC, marking a significant departure from typical corporate behavior. Observers are questioning whether Coupang's actions could set a precedent and undermine the government's ability to regulate the business sector.

The trade dispute centers around allegations that Coupang unfairly shifted the cost of its "price-matching coupons" onto suppliers. FTC inspectors sought to investigate the matter, but Coupang refused to grant access, citing the FTC's failure to provide seven days' notice, as required by the Framework Act on Administrative Investigations. FTC inspectors argued that the law waives the notice requirement when there are concerns about the destruction of evidence. However, they later withdrew from the site.

Industry sources note that companies typically challenge FTC investigations through legal means, but physically preventing inspectors from entering the premises is unprecedented. Some speculate that Coupang's aggressive tactics reflect the company's strong lobbying presence in the US and the pressure Washington is currently applying. It is also suggested that Coupang's actions may be motivated by a perception that the FTC lacks sufficient evidence to substantiate its allegations.

The refusal to allow an FTC inspection raises concerns among observers that other companies could follow suit, potentially weakening the government's capacity to monitor the market. Coupang has filed a lawsuit, seeking to have the FTC investigation halted altogether.