The Fair Trade Commission (FTC) has warned of an intensive investigation into Baedal Minjok (Baemin), which has been embroiled in controversy over "monopoly tyranny" due to the fee reform.
In addition, the FTC plans to scrutinize not only the new fee system, but also whether information such as the personal information of the orderers collected by Baemin and Yogiyo (Delivery Hero) and preferred menus are properly managed through on-site investigations.
Regarding the controversy over the new delivery fee system, Kim Jae-shin, secretary general of the FTC, said on April 6, "I think that the fact that the commission system can be changed to a large extent during the examination of whether or not it is monopolized in connection with a business combination is a single example of the market dominance of the company."
“In particular, we plan to sternly deal with the problem of harmful effects of monopoly in a review of approval for a business combination with German-based company Yogiyo,” he said.
Earlier on Dec. 30 last year, the nation's No. 1 and No. 2 delivery apps, Baedal Minjok and Yogiyo, submitted reports on the two companies' business combinations. Upon receiving the report, the FTC will decide whether to approve the merger in accordance with the "corporate combination review criteria" set by the notice.
Earlier, Baemin changed the method of charging fees in a surprise move from April 1. It has changed its existing monthly fee system (88,000 won or some $72) to a fixed rate system (5.8 percent of the sales of orders that have been completed). However, restaurants and small business associations protested, calling it a "fee trick hike."
