Dealers selling SolidWorks, a CAD software essential for product design in machinery and electronics, have been caught by fair trade authorities for setting minimum prices. The collusion reportedly led to price increases of over 50% for key products, significantly raising costs for domestic manufacturers.
On July 9, the Fair Trade Commission announced it would impose a fine of 2.372 billion won (approximately $1.8 million) and issue corrective orders against eight companies involved in the price-fixing scheme. SolidWorks is well-known for its use in creating technical drawings.
The companies penalized include Node Data, Maven, Solco, Web System Korea, Weaverman, K&Solution, Han Young Solutech, and Prism. These firms are dealers that exclusively sell SolidWorks products supplied by Dassault Systèmes Korea, effectively monopolizing the domestic market.
The investigation revealed that the collusion began after the supplier's exclusive sales protection policy was halted due to regulatory actions. As competition among dealers intensified and product prices fell, these companies sought to avoid competition and increase profits by forming a collusion system.
They initially agreed on minimum selling prices for key product lines and established a 'client restriction' agreement, prohibiting other dealers from approaching existing clients. When existing clients sought quotes from other dealers, they submitted prices above the pre-agreed amounts.
Notably, they also implemented a system to expel any dealer that violated the agreement more than three times.
As a result of the collusion, the average selling price of SolidWorks CAD software rose by 53.81% compared to before the collusion. The Fair Trade Commission stated that this cost increase has hindered the competitiveness of the domestic manufacturing industry.
Consequently, the commission imposed a fine of 2.372 billion won for violations of the Fair Trade Act. The fines for each company include 429 million won for Weaverman, 388 million won for Node Data, 372 million won for Maven, 292 million won for K&Solution, 286 million won for Han Young Solutech, 271 million won for Solco, 258 million won for Prism, and 76 million won for Web System Korea.
A Fair Trade Commission official stated, "The significance of this action lies in uncovering and penalizing collusion that has raised the costs of essential software for product development, thereby undermining industrial competitiveness. We expect this measure will improve collusion practices in the industrial software sales market."
On July 9, the Fair Trade Commission announced it would impose a fine of 2.372 billion won (approximately $1.8 million) and issue corrective orders against eight companies involved in the price-fixing scheme. SolidWorks is well-known for its use in creating technical drawings.
The companies penalized include Node Data, Maven, Solco, Web System Korea, Weaverman, K&Solution, Han Young Solutech, and Prism. These firms are dealers that exclusively sell SolidWorks products supplied by Dassault Systèmes Korea, effectively monopolizing the domestic market.
The investigation revealed that the collusion began after the supplier's exclusive sales protection policy was halted due to regulatory actions. As competition among dealers intensified and product prices fell, these companies sought to avoid competition and increase profits by forming a collusion system.
They initially agreed on minimum selling prices for key product lines and established a 'client restriction' agreement, prohibiting other dealers from approaching existing clients. When existing clients sought quotes from other dealers, they submitted prices above the pre-agreed amounts.
Notably, they also implemented a system to expel any dealer that violated the agreement more than three times.
As a result of the collusion, the average selling price of SolidWorks CAD software rose by 53.81% compared to before the collusion. The Fair Trade Commission stated that this cost increase has hindered the competitiveness of the domestic manufacturing industry.
Consequently, the commission imposed a fine of 2.372 billion won for violations of the Fair Trade Act. The fines for each company include 429 million won for Weaverman, 388 million won for Node Data, 372 million won for Maven, 292 million won for K&Solution, 286 million won for Han Young Solutech, 271 million won for Solco, 258 million won for Prism, and 76 million won for Web System Korea.
A Fair Trade Commission official stated, "The significance of this action lies in uncovering and penalizing collusion that has raised the costs of essential software for product development, thereby undermining industrial competitiveness. We expect this measure will improve collusion practices in the industrial software sales market."
* This article has been translated by AI.
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