Four manufacturers and suppliers of tablet computers for digital textbooks are under investigation by the Fair Trade Commission (FTC) for alleged bid rigging.
On September 17, the FTC's secretariat announced that it has submitted a report on the review of the bid rigging case involving tablet computers for digital textbooks, initiating the review process. The companies under scrutiny are iBridge.com, A-Tech Computer, Uniwide, and For You Digital.
The investigators determined that these companies had engaged in organized collusion during the bidding process for tablets commissioned by educational authorities. The total value of the affected bids is approximately 65 billion won, with over 200,000 tablets supplied through these contracts.
The tablets in question are electronic devices provided to schools, enabling elementary, middle, and high school students to access digital textbooks and utilize online learning support software. Digital textbooks are designed to digitize the content of traditional textbooks and integrate various learning materials such as videos, audio, and images. Students can interact with the content using touch screens, electronic pens, and keyboards.
Unlike products purchased individually by consumers, educational tablets are supplied through bulk purchases by public institutions like educational authorities and schools, which then lend them to students. A single bid can result in the supply of thousands to tens of thousands of devices.
Suppliers are selected through public bidding, and contracts typically include not only the supply of devices but also initial setup, software installation, provision of peripherals, and maintenance.
The investigators classified the alleged actions as a 'serious violation' of the prohibition against bid rigging under the Fair Trade Act. The report includes recommendations for corrective measures, including a ban order, imposition of fines, and potential criminal charges against current and former executives of the companies involved.
However, the report is a document outlining the facts, legality, and recommendations identified during the investigation and does not bind the commission's final judgment. The actual determination of legal violations and the level of penalties will be decided through an independent commission review.
The companies under review can submit written opinions within six weeks from the date they receive the report. They are also entitled to request access to and copies of evidence materials.
The FTC stated, 'Once the procedures to guarantee the right to defense are completed, we plan to convene the commission as quickly as possible to determine whether a legal violation has occurred and, if confirmed, to finalize the specific level of sanctions.'
* This article has been translated by AI.
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