Delivery Hero Korea ran Yogiyo as South Korea's No. 2 food-delivery app. Between 2013 and 2016, it told contracted restaurants not to sell food more cheaply by phone or through rival apps than they did on Yogiyo.

The policy was enforced with a lowest-price guarantee: Yogiyo refunded customers when they found lower prices elsewhere, then used the reports to police restaurants. Korea's Fair Trade Commission said 43 restaurants that refused to revise prices had their contracts terminated.

In June 2020 the KFTC ordered corrective measures and set the surcharge at ₩468,000,000. The platform stopped the policy after the probe began, but the case showed how price-parity rules can turn a marketplace into a toll booth for suppliers.

KFTC imposed a ₩468,000,000 surcharge; 43 restaurants that resisted had been removed from Yogiyo.

Yogiyo treated lower direct or rival-app prices as a contract breach instead of competing on service.

The refund program doubled as surveillance against restaurants that tried to avoid platform commission.

Terminating 43 restaurants made the rule credible, which also made the legal exposure concrete.

A marketplace cannot protect take rate by making suppliers erase cheaper off-platform channels.

Delivery Hero Korea said it had halted the policy after the KFTC investigation began and cooperated with the probe. The KFTC framed the case as the first Korean sanction against a delivery app for this kind of restaurant price restriction.

FOLLOW THE EVIDENCE

The sources

  1. Food delivery app Yogiyo fined for exploiting dominant position in market en.yna.co.kr
  2. Yogiyo case decision preview case.ftc.go.kr
  3. FTC slaps Delivery Hero Korea with W468 mil. fine for price fixing koreatimes.co.kr