FTC imposes sanctions on Qiazen Korea, which stole agency's profits
FTC imposes sanctions on Qiazen Korea, which stole agency's profits
  • Jung Jun-ho
  • 승인 2019.11.01 10:16
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Qiagen Korea, which supplied goods directly after it terminated a contract with an agency to intercept profits, was sanctioned by the Fair Trade Commission (FTC).

The FTC said on Oct. 30 that it has imposed a correctional order and a fine of 40 million won on Qiazen Korea for its decision to terminate its contract with a dealership handling its products and refuse to supply products for tuberculosis diagnostic devices.

In November 2015, Qiazen Korea notified its dealer of the termination of the contract and suspended the supply of its products after Gilbon announced its bid to place an order for tuberculosis diagnostic devices worth 2.5 billion won.

As a result, the agency failed to participate in the bid. Qiazen Korea has exclusively participated in the bid to receive distribution profits that the agency will earn.

The expiry date of the contract that Qiazen Korea signed with the agency was in December 2016, more than a year from the date of notification of the termination. "If we want to terminate the contract according to regulations, it must be three months after notifying them," the FTC said. "Qiazen Korea declined to supply its products to the dealer immediately after the notice of the contract cancellation."

Qiazen Korea has eroded the agent's chances of bidding by refusing to supply its products even though the contract period remains, the FTC said, adding that the agency has thus lost its efforts to secure customers and forfeited the economic benefits it could have gained during the remaining contract period.

Qiazen Korea imports tuberculosis diagnosis devices from German life science company Qiagen and sells them in Korea. As of 2014, it has about 39% of market share of tuberculosis diagnostic devices.


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