FTC-pharmaceutical firms

FTC-pharmaceutical firms

FTC slaps 40.9 bln won in fines on drug firms for bid-rigging

SEOUL, July 20 (Yonhap) -- South Korea's antitrust regulator said Thursday it has decided to slap combined fines of 40.9 billion won (US$32.2 million) on 32 pharmaceutical companies involved in collusive practices in the government's procurement bids.

The companies, including a vaccine manufacturer, distributors and wholesalers, have engaged in unfair business practices in 170 bids launched by the Public Procurement Service from 2013 to 2019, according to the Fair Trade Commission (FTC).

The investigation showed that the companies selected a winner in advance by sharing their bid prices in the government's procurement bids for various vaccines, including those for influenza, hepatitis and tuberculosis.

The FTC noted Green Cross Corp., Boryung Biopharma, and SK Discovery Co. were involved in the collusion despite receiving a punitive measure back in 2011.

"The latest action is significant, as it sheds light on the extensive bid rigging in the local vaccine market involving nearly all players, including vaccine manufacturers, distributors and wholesalers," the FTC said.

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