Small Business Association "Respect Fair Trade Commission's Review Result on Baemin-DH Corporate Merger"

[Asia Economy Reporter Kim Cheol-hyun] The Korea Federation of Micro Enterprise (Acting President Kim Im-yong) issued a statement on the 29th regarding the Fair Trade Commission’s (FTC) corporate merger review of Woowa Brothers, the operator of Baedal Minjok (Baemin), and Delivery Hero (DH), which operates Yogiyo and Baedaltong, expressing respect for the results.

The Korea Federation of Micro Enterprise stated, "According to the FTC, DHK must sell all its shares to a third party within one year, and until then, it cannot change commission rates or promotions to maintain the asset value of Yogiyo. This appears to be a de facto disapproval of the merger between the two companies by the FTC, and we respect the FTC’s judgment."

The Federation has urged the FTC to conduct a strict review by submitting opinions and issuing related statements during the corporate merger review process. In particular, it raised concerns about the unilateral determination of transaction conditions such as commissions imposed on small business owners, as well as the risks of market dominance abuse and intensification of unfair practices.

The Federation added, "The FTC judged that if competition between Baemin and Yogiyo disappears, consumers and restaurants could suffer losses, and it also appears to have considered the possibility that commission discount competition to attract restaurants would shrink or commissions for existing partner restaurants might increase. In the context of concerns that the emergence of a monopolistic delivery giant would exacerbate the burdens on small business owners already struggling due to the COVID-19 crisis and accelerate dependence on massive online platforms, this measure will provide an opportunity for small business owners to catch their breath."

Furthermore, the Federation stated, "Legislative efforts to prevent damages to small business owners caused by the tyranny of delivery apps should follow through the enactment of the Online Platform Fairness Act," and added, "We hope this decision will serve as an opportunity for delivery apps to respect and consult with small business owners as consumers and to systematize such structures, thereby fostering a fair delivery app ecosystem."

This content was produced with the assistance of AI translation services.