▲ Tablet computers for digital textbooks
Four companies that colluded in bidding for tablet computers used for digital textbooks in schools are facing review by the Fair Trade Commission (FTC).
The FTC's secretariat announced on September 17 that it has submitted an examination report containing recommendations for sanctions to the commission regarding the alleged bid-rigging for digital textbook tablet computers by four tablet computer manufacturing and sales businesses: Ibridge, Atec Computer, Uniwide, and ForYou Digital.
The examination report details the illegality and proposed sanctions identified by investigators during the investigation process, but it is not binding on the commission's final decision.
Digital textbooks are digital-format textbooks designed to replace or complement traditional book-based textbooks by digitizing course content and allowing users to utilize various learning materials such as videos and audio.
With remote learning becoming widespread due to the spread of COVID-19, they were introduced in earnest to schools starting in 2020.
The subject of the collusion was electronic devices distributed to schools through offices of education and other channels to enable students to view these digital textbooks and use online learning support software.
FTC investigators suspect that the four companies agreed upon and executed successful bidders, collusive bidders acting as decoys, and bidding prices in tablet computer bids for digital textbooks commissioned by a total of 15 offices of education (including regional offices of education) from September 2022 to January of last year.
The scale of the bids affected by the collusion is estimated at approximately 65.1 billion won, with over 200,000 tablet computers supplied through these bids.
The FTC investigator concluded that such actions constitute a "very serious violation" of the Fair Trade Act and proposed corrective measures, including future prohibition orders, along with the imposition of fines.
Considering the imposition rate standard (up to 15%) applicable at the time of the collusion, this could translate to potential fines of 9.75 billion won.
However, in cases of bid-rigging, the maximum fine could increase as the sales of decoy bidders may be added to the related sales volume after deliberation.
Conversely, if the applicable imposition rate is adjusted based on factors such as cooperation with the deliberations, there is room for the fines to be reduced.
Additionally, the FTC investigator recommended filing criminal complaints with the prosecutors' office against the corporate entities as well as current and former executives and employees.
The four respondent companies can submit written opinions or apply to view and copy evidentiary materials within six weeks from the date of receiving the examination report.
The FTC plans to hold a commission meeting as quickly as possible to make a final decision once the procedures for guaranteeing the right of defense are completed.
(Photo provided by the FTC, Yonhap News)
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