Excavator Rental Price Fixing, Business Activity Obstruction... Correction Order and Fine Imposed
[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] The Gwangju Office of the Fair Trade Commission announced on the 3rd that it has decided to impose a corrective order and a fine of 4 million won on the Jeollanam-do Jangheung Branch of the (Corporation) Construction Machinery Individual Business Operators Association for determining excavator rental prices and obstructing the business activities of member and other operators.
According to the Gwangju Office, the Jangheung Branch set daily rental prices for each excavator model, created a price list indicating the rental prices by model, distributed it as leaflets, and promoted it by attaching large stickers to its broadcast vehicles.
The Jangheung Branch also resolved and notified its members to ▲prohibit joint work with non-members, ▲refrain from participating in work sites when excavator demanders request contracts at lower rental prices, ▲deploy only one excavator per member at the site, and ▲limit working hours.
Additionally, they resolved to “urge non-members to join their organization and, if they refuse, to pressure them to withdraw from the work site; request construction site personnel to prohibit the use of non-member vehicles; and demand non-members to comply with working hours,” and actually visited construction sites where non-members were working to solicit membership and pressure withdrawal.
The Gwangju Office stated, “This measure is significant in that it uncovered the acts of price-fixing for excavator rentals and obstruction of business activities by members and other operators in the Jangheung area, thereby correcting the practices of the local business association,” and added, “It is expected that free competition among excavator rental operators will be promoted in the future.”
It continued, “We will continue to monitor illegal acts by business associations in the excavator rental market and strictly sanction violations according to law and principles when detected.”
This association includes about 50.7% (69 units) of the 136 registered commercial excavators in the Jangheung area.
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