julesmenten, 05 July 2021
According to industry figures with research knowledge, South Korea’s Coupang is being investigated for allegations that it has manipulated search algorithms to prioritize its products over its suppliers’ products.
The Korea Fair Trade Commission conducted an on-the-spot inspection last month at the headquarters of an e-commerce group in Seoul after being accused of abusing market dominance by increasing exposure to its own branded products rather than third parties. went.
Despite the founder Bom Suk accelerating Coupang’s expansion plans, the study shows the latest retreat of SoftBank-backed companies. $ 3.5 billion initial public offering In March in New York.
Also, after a series of worker deaths in a warehouse, the company faced criticisms of labor practices and workplace safety, and consumers Handling of recent fires It killed one person and destroyed its largest logistics center.
Coupang has previously denied liability for death and has supported its fire protection procedures.
“KFTC is using that algorithm to investigate allegations of unfair business practices,” said a close industry insider.