South Korea Fines Software Distributors $1.52M for Price Rigging
En resumen
- South Korea's Fair Trade Commission (FTC) has fined eight local distributors of SolidWorks software a combined 2.3 billion won (US$1.52 million) for price rigging.
- The distributors colluded from 2021 to 2024, fixing minimum sales prices and avoiding competition, which led to a 53.8% increase in software purchase prices for local companies.
Resumen generado por IA
Por qué importa
South Korea's antitrust watchdog has fined eight local distributors of SolidWorks software for engaging in price fixing, a practice that occurred between 2021 and 2024.
By Kang Yoon-seung
SEJONG, July 9 (Yonhap) -- South Korea's antitrust watchdog on Thursday decided to slap a combined fine of 2.3 billion won (US$1.52 million) on eight local distributors of SolidWorks software for price rigging.
The Fair Trade Commission (FTC) said the eight companies, which distribute SolidWorks software, an industrial program developed by Dassault Systemes SolidWorks Corp. and widely used in various sectors from machinery to medical devices, engaged in price fixing, leading to higher costs for buyers.
"The distributors of SolidWorks software engaged in face-to-face meetings and mobile chats to avoid competition and maximize their profits, by fixing minimum sales prices," the FTC said, noting the collusion was carried out from 2021 to 2024.
The FTC said the distributors, which account for the entire domestic market, also agreed not to approach buyers already secured by others and to submit price quotes above certain levels when receiving requests from such customers.
The watchdog said the violation led to an increase in software purchase prices for local companies, hurting their industrial competitiveness.
For example, the FTC said the average price of SolidWorks CAD products shot up 53.8 percent in the third quarter of 2023 compared with the second quarter of 2021, prior to the rigging.
The size of the related market in South Korea was estimated at 54.7 billion won as of 2023, according to the FTC.
Preguntas abiertas
- Will further investigations into other software distributors occur?
- What specific measures will be taken to prevent future collusion?
