FTC carries out on-site probe into Coupang: Sources

South Korea's KFTC launched another probe into Coupang, facing fines totaling KRW 782.6 billion ($576 million) for alleged anticompetitive practices and data breaches. Academics argue regulators punish behavior, not market harm. Courts have overturned similar fines, favoring effects-based standards.

Coupang (NYSE:CPNG) reported Q2 revenue of $8.86B, up 3.9% YoY, missing estimates by 2.2%. Carvana (NYSE:CVNA) reported $7.38B revenue, up 52.4% YoY, beating estimates by 7.7%. Amazon (NASDAQ:AMZN) reported $200.6B revenue, up 19.6% YoY, beating estimates by 2%.

The Korea Fair Trade Commission (KFTC) is investigating Coupang for alleged abuse of market dominance, seeking 10 years of data. Coupang cooperated this time, unlike a prior probe. The focus is on Coupang's price-matching coupon system, with suppliers claiming it unfairly shifts costs. Coupang denies wrongdoing. Separately, police and labor authorities searched a Coupang logistics center after a worker's accident.

The FTC has launched a second on-site investigation into Coupang, focusing on potential Fair Trade Act violations. Coupang complied, unlike a prior probe under the Large-Scale Retail Business Act, which it contested. The FTC secured materials related to alleged unfair business practices. A court hearing is scheduled to decide on the suspension of the earlier investigation's execution.

South Korea's Fair Trade Commission conducted an on-site probe into Coupang Inc. to investigate allegations of unfair business practices. Coupang cooperated with this inspection, unlike a previous attempt last month. The FTC is looking into claims that Coupang obstructed other companies' operations and shifted discount costs to suppliers. Coupang had previously refused to cooperate, citing lack of proper notification.

Baron Capital's Q2 2026 investor letter reports a 24.6% gain, outperforming benchmarks. Coupang (CPNG) shares fell 7.7% due to softer Q2 guidance, margin pressures from supply chain investments, and a KRW 624.7 billion fine. Despite this, Baron maintains conviction in Coupang's long-term prospects, citing temporary margin issues and recovery in customer volumes. CPNG's stock is down 43.47% year-to-date.