The Fair Trade Commission of South Korea announced on Tuesday that it has decided to impose a fine of 400 million won (US$302,000) on Mr.Pizza Inc., a local chain operator, for interfering with the operations of its competitor. The punitive action was in response to the company’s disruption of the supply of ingredients to Pizza Union Coop, which was founded by individuals who had formerly operated Mr.Pizza stores.
In 2017, Mr.Pizza opened new locations near Pizza Union Coop’s stores and implemented mass discount promotions, evidently with the intention of obstructing the operations of its rival. Furthermore, the company filed a lawsuit against the founder of Pizza Union Coop for defamation and pressured ingredient suppliers to stop supplying the newly established firm.
As a result of Mr.Pizza’s actions, Pizza Union Coop encountered difficulties in creating a new menu, obtaining ingredients, managing stores, and recruiting owners. Meanwhile, Mr.Pizza was the second-largest player in the market, with sales of 81.5 billion won and 311 stores in 2017, while Domino’s topped the list with 219.7 billion won and 442 stores. In 2021, Mr.Pizza has dropped to sixth place with sales of 32.2 billion won and 217 stores.