Hello, I am Law Firm Cheongchul Attorney Eom Sang-yun.
Today, we will discuss collusion through information exchange.
[Question]
Is it possible to be colluding even if we exchange business-related information with a close contact from another company?
[Answer]
Article 40, Section 1, No. 9 of the Monopoly Regulation and Fair Trade Act ('Fair Trade Act') prohibits agreements to engage in acts that substantially restrict competition in certain trade areas by exchanging information such as 'price, production volume, or other information prescribed by presidential decree,' and Article 44, Section 2 of the Enforcement Decree of the Fair Trade Act defines the information prescribed by presidential decree as ① cost, ② shipping volume, inventory volume, or sales volume, ③ trading conditions or payment conditions.
Thus, even if there is no direct agreement on prices, exchanging information regarding costs, inventory, sales volumes, etc., which could affect prices, could be classified as collusion or unfair joint conduct.
Fair Trade Act Article 40 (Prohibition of Unfair Joint Conduct) ① A business entity shall not reach an agreement (hereinafter referred to as “unfair joint conduct”) to engage in the following acts that unfairly restrict competition, either through contracts, agreements, resolutions, or any other means, with another business entity. 1. Acting to determine, maintain, or change prices 2. Determining trading conditions for goods or services, or the conditions for payment or compensation 3. Restricting the production, shipping, transportation, or trade of goods, or the trade of services 4. Restricting trading areas or trading partners 5. Hindering or restricting the establishment or expansion of facilities for the production or trade of services 6. Restricting the kinds or specifications of goods or services during production or trade 7. Jointly carrying out or managing major sectors of business or establishing companies for performing or managing such actions 8. Determining the successful bidder, auctioneer, bid price, successful bid price, or auction price, or other matters as prescribed by presidential decree when bidding or auctioning 9. Any other actions that interfere with or restrict the business activities or contents of other business entities (including those engaged in such actions) or engage in acts that substantially restrict competition in certain trade areas by exchanging price, production volume, or other information prescribed by presidential decree
Enforcement Decree of the Fair Trade Act Article 44 (Criteria for Joint Conduct) ② The |
