2 total complaints from each venture company and store owners about Yogiyo and Baemin sales conditions



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Cospo “Avoiding the dynamics of the digital economy … preventing our startups from entering the global market”
Franchise Owners Association “It shouldn’t have been allowed at all … I need to negotiate a win-win relationship to avoid harming the freelancers

Each of the venture industry and store owners is dissatisfied with the conditions for the acquisition of Baemin for the sale of 'Yogiyo'

When the Fair Trade Commission ordered Germany’s Delivery Hero (DH) to “sell Yogiyo to take over Baedal’s People (Baemin)”, the venture industry criticized it as “a decision that would negatively affect Korean startups.”

The newly created Korea Startup Forum (Cospo) issued a statement on the 28th, saying: “We deeply regret that the FTC made this decision despite opposition from the industry and many experts.”

Cospo is an emerging organization led by President Bong-jin Kim, who founded the elegant brothers who run Baemin.

President Kim served as the first president of Cospo from 2016 to 2019.

On the day, Cospo noted, “The FTC has moved away from the situation where platform operators can enter the food delivery market as much as possible based on the network effect.”

It is argued that expanding the borderless platform between industries such as open trade operators entering the food delivery market or online video service (OTT), OTT operators entering the live trading market and distributors entering the logistics industry, is the dynamics of the digital economy. be be.

They said: “The FTC’s decision will negatively affect the global valuation of Korean startups and generate huge losses in global advance” and “will negatively affect the digital economy and startup ecosystem as a whole and hamper the growth of innovation.” .

Each of the venture industry and store owners is dissatisfied with the conditions for the acquisition of Baemin for the sale of 'Yogiyo'

On the other hand, franchisee and consumer organizations expressed regret that the FTC should have denied DH’s acquisition of Baemin at all.

On the 23rd, when the plenary meeting of the FTC was held, the National Association of Franchisees, Participación Solidaria, and the People’s Economic Research Institute issued a joint statement and demanded that “DH and Baemin should not be able to combine companies.

They also posted a joint comment that day and said: “Despite the fact that several unfair acts have already occurred in the monopoly structure, we regret having made a compromised decision that is conditional approval.” We have to propose a plan, “he said.

Subsequently, “The FTC should provide a critical alternative to issues such as unilateral rate change, pass-through of shipping / advertising cost, search / display algorithm nondisclosure, and monopoly on customer information. Added.

“It should have been disapproved,” said Kim Jong-min, secretary general of the National Association of Franchise Owners.

“It is not a welcome position,” he said. “Follow-up action will have to be taken to clear up the sale, but that doesn’t change (DH’s) monopoly status.”

He said, “I hope this is an opportunity for Baemin to re-enter a win-win discussion to discuss the information monopoly or pricing issues.”

He urged the authorities to create a discussion forum so that the self-employed are not harmed.

On that day, the Fair Trade Commission ordered DH to sell Delivery Hero Korea (DHK, Yogiyo’s operator) within six months to take over Baemin.

The Fair Trade Commission noted that if DH takes over Baemin, Yogiyo, Delivery Box and Food Fly they will take 99.2% of the market share.

Each of the venture industry and store owners is dissatisfied with the conditions for the acquisition of Baemin for the sale of 'Yogiyo'

/ yunhap news

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