Court rules public interest outweighs harm to Coupang Inc
Fair Trade Commission to impose obstruction fine; further probe possible
Legality of on-site inspection to be decided in main lawsuit
A court has rejected Coupang Inc's request to suspend the Korea Fair Trade Commission's on-site investigation of the e-commerce giant.
The Seoul High Court's Administrative Division 6-2, presided over by Judges Choi Hang-seok, Park Young-ju and Kim Min-ki, dismissed the injunction request Wednesday. The ruling immediately restored the full effect of the Fair Trade Commission's on-site inspection order.
The court said the impact that suspending the order would have on public welfare outweighed any disadvantage the inspection would cause Coupang Inc. The ruling appeared to accept the Fair Trade Commission's argument that granting the stay could set a precedent allowing other companies to halt on-site probes through similar injunction requests.
The Fair Trade Commission launched the on-site investigation last month over allegations that Coupang Inc violated the Act on Fair Transactions in Large-scale Distribution. The probe centers on allegations that the company shifted discount costs onto its suppliers. Coupang Inc refused to cooperate, saying it had not received advance notice, and filed both a lawsuit to cancel the inspection order and the injunction request.
The court had temporarily suspended the inspection order until Wednesday and held a hearing Sept. 2 to hear arguments from both sides.
The Fair Trade Commission, which prevailed in the ruling, plans to convene a subcommittee meeting to impose a fine on Coupang Inc for obstructing the investigation. Companies that refuse an on-site inspection can face fines of up to 200 million won. The commission also said it would conduct additional on-site inspections if necessary to complete its case.
The court's rejection of the injunction request does not constitute a ruling on the legality of the on-site inspection itself. That question is expected to be addressed in the main lawsuit.
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