KFTC to Restrain Delivery Hero for Interference with Food Prices
The Korea Fair Trade Commission (KFTC) is determining what restrictions to impose on Delivery Hero for interfering with how much its partner restaurants charge.
Delivery Hero, a German firm operating under the and the Baedaltong and Yogiyo brands in South Korea, has allegedly been preventing restaurant owners from giving discounts to over-the-phone orders.
It also threatened to delete from the Yogiyo application those restaurants that discouraged people from ordering through the mobile app, which costs 12.5 percent commission per order.
The KFTC said Delivery Hero's interference on how the restaurant owners' could set their prices is a violation of the Fair Trade Act, which protects customers' right to seek the best value for their money.
Delivery Hero claimed it only implemented restrictions on restaurants that charged more for the same food on their app than on other delivery apps.
To solve the issue, KFTC will first ascertain whether or not Delivery Hero is able to dictate its terms to restaurant owners due to its market share.