Seoul District High Court ruled against the Korea Fair Trade Commission (KFTC) Wednesday ordering it to reverse its fine of W100 million imposed on French mega-retailer Carrefour for allegedly forcing its suppliers to discount the price of goods supplied and bear advertising costs.

Special Department 6 Judge Lee Chan-gu ruled in favor of the retail giant in a case filed by Carrefour against the FTC in reaction to a penalty of W113 million imposed on it, saying there was no solid evidence supporting the government watchdog’s contention.

The court stated that the FTC’s order was based on a supplier’s report, which was deemed unreliable. It said that the discount Carrefour received, of W1.5 million out of a total bill of W890 million, could be interpreted as customary practice.

The FTC fined Carrefour W113, million for allegedly passing on the pay for sales staff and part time employees, and advertising expenses to its suppliers in September 1999.

(Lee Myeong-jin, mjlee@chosun.com )