Will Coupang follow Google Korea's lead and unbundle services?

Coupang's delivery trucks are parked at a logistics center in Seoul, May 7. Yonhap

Coupang is facing growing pressure to address cross-selling practices across its three online services, following Google Korea’s recent decision to end the forced bundling of YouTube’s music and ad-free video services.

Last week, the nation’s top antitrust watchdog launched a probe into the e-commerce giant to decide whether it has engaged in any unfair sales practices through its WOW paid membership program.

Users of Coupang’s 7,900-won ($5.77) monthly subscription service get access to its ultra-fast Rocket Delivery, free food delivery via Coupang Eats, and ad-free streaming on Coupang Play.

However, the Fair Trade Commission (FTC) considers it “unfair cross-sales activities” that prevent free competition in the market. Coupang is an unmatched leader in the nation’s e-commerce market, so the watchdog is investigating if the company has breached any fair trade laws by engaging in unfairly cross-selling the services.

This raises the likelihood that Coupang will follow in Google Korea's footsteps. The search engine giant voluntarily offered to unbundle its YouTube Music and YouTube Premium services apparently to avoid sanctions from the watchdog.

Previously, Coupang was investigated by the watchdog over similar concerns after pushing for a drastic 58 percent hike in its membership fee in August 2024, a move that sparked complaints from civic groups.

As Google Korea will launch a cheaper subscription plan for its ad-free streaming service by unbundling YouTube Music, some speculate that Coupang may follow suit by separating its bundled services and offering more affordable subscription options to its users.

A Coupang Eats worker delivers food to customers in Seoul in this undated file photo. Courtesy of Coupang Eats

Given the FTC’s strong commitment to investigating unfair cross-sales practices, Coupang is likely to face continued scrutiny by the watchdog until it addresses its current business model. The watchdog has pledged to place its 2025 investigative focus on regulating cross-sales from market-dominant platform firms.

“The latest decision by Google Korea will put Coupang in a growing state of dilemma,” an industry source said. “As the watchdog maintains a hardline stance on the agenda, there stands an ample possibility that the company will follow in YouTube's footsteps.”

Earlier, the FTC considered the forced bundling of YouTube Music and YouTube Premium to be unfair, as it caused local music streaming platforms to lose users to YouTube due to its dominant market position here.

“However, Coupang has to take into consideration multiple factors before possibly launching new subscription plans, as Coupang Eats and Coupang Play do not maintain dominant market leadership like YouTube Music,” the official said.

“Users for Coupang Eats and Coupang Play cannot be seen as to be as loyal as those from YouTube Music, so the company needs extra caution before launching new separate subscription plans.”