Coupang Files Lawsuit Against Fair Trade Commission's Fine... Requests Suspension of Corrective Order Enforcement

Complaint Filed at Seoul High Court on the 5th
"Will Faithfully Present Evidence and Accept Judgment"

Coupang has filed a lawsuit at the Seoul High Court challenging the Fair Trade Commission's decision to impose a fine of 160 billion won.

According to industry sources on the 9th, Coupang submitted a complaint to the Seoul High Court on the 5th, one day before the deadline for filing the lawsuit, seeking the cancellation of the fine decision. They also filed a request for a suspension of execution to halt the enforcement of the corrective order issued by the Fair Trade Commission until the lawsuit's outcome is determined. Lawsuits against Fair Trade Commission decisions must be filed within 30 days from the date the company receives the commission's resolution document. Coupang received the resolution document on the 7th of last month, making the deadline for filing the lawsuit the 6th. A Coupang representative stated, "We will faithfully present our case to the court and accept its judgment."

Coupang Headquarters, Songpa-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Earlier, the Fair Trade Commission imposed a fine of 162.8 billion won on Coupang for violating the Fair Trade Act. It also issued a corrective order to stop practices such as manipulating search algorithms and using employee reviews to mislead consumers into believing that private brand (PB) products were superior, thereby inducing purchases.

In its investigation, the Fair Trade Commission concluded that Coupang manipulated the search ranking algorithm to increase sales of PB products and others. They found that Coupang artificially boosted the ranking scores for specific products or adjusted rankings disregarding actual search results to place their own products at the top of search rankings. Additionally, the commission concluded that Coupang hindered consumers' rational purchasing decisions by mobilizing employees to write 'self-reviews.'

After the Fair Trade Commission's decision, Coupang responded, "All retailers prioritize recommending and displaying their own PB products." They added, "Retailers must present unique differentiated products to compete, and forcing them to follow uniform standards even for such display strategies would stifle competition among companies and reduce consumer benefits." Coupang also announced their intention to file an appeal lawsuit, stating, "The matter will be judged in court."