Bike Bank, the leading company in the motorcycle rental market, has been sanctioned by the Fair Trade Commission for restricting motorcycle supplies to delivery service providers that do not use its affiliate program and imposing penalties.
On the 12th, the Fair Trade Commission announced that it would impose corrective orders on Bike Bank and Logio for conditional trading practices. Both companies have the same major shareholder, with Bike Bank supplying motorcycles and Logio operating delivery service software (call dispatch and settlement programs, etc.).
According to the Fair Trade Commission, from July 2019 to January 2024, Bike Bank supplied two-wheelers to a total of 852 delivery service companies, requiring them to sign a contract that stipulated a 20% penalty on the remaining rental fee if they used competitive programs outside Logio.
This condition was not merely a simple statement. In fact, Bike Bank charged a total of 500 million won in penalties to 64 companies that deviated from the Logio program. The Fair Trade Commission concluded that Logio maintained market share using its affiliate's rental supply power rather than through price or functional competition. The agency pointed out that by utilizing its affiliate as a competitive means, it effectively restricted competition in the program market.
However, the Fair Trade Commission noted that the actions of both companies did not completely block market entry, so it decided only to impose corrective orders without penalty surcharges.
A Fair Trade Commission official stated that they would strengthen monitoring to ensure that anti-competitive behavior that unfairly limits competition does not occur, considering the characteristics of the food delivery service market, which is continuously expanding and changing.