Professional E. E. accused of designating company and brand in a project to add second power supply circuit at Academia Sinica in violation of the Fair Trade Law
Chinese Taipei
Case:
Professional E. E. accused of designating company and brand in a project to add second power supply circuit at Academia Sinica in violation of the Fair Trade Law
Key Words:
negotiable review process, similar products, separator switch
Reference:
Fair Trade Commission Decision of February 3, 1999 (378th Commissioner Meeting); Disposition (88) Kung Ch'u Tzu No. 016
Industry:
Architecture and Engineering Technology Services (7200)
Relevant Law:
Article 24 of the Fair Trade Law
Summary:
Chuan Lien Company (Chuan Lien) charged that in a project to add a 3P, 24KV, 1250A separator switch to the second power supply circuit in the power system of Academia Sinica, only Hsuen Wen Electronics Company had the switch in stock and an application to use a similar product was not approved by supervision and construction Professional E. E. (Huang Ren-chun E. E.) The specifications of the separator switch were triple pole, continuously operating, 24,000 volts, 1,250 amps and with anti-arc equipment. Brands used as a reference included the C3 of ABB Company, SACE of ABB Company, GEC ALSTOM Company, and AEG of Ya Li Electronics.
In letter Chuan (87) Fa Tzu No. 0159 dated July 14, 1998, Chuan Lien applied to use a similar product. The letter noted that the C3 switch was out of production, a 1250A vertical tube connector separator switch was not made by GEC or SACE, and AEG did not meet specifications because it was a knife switch. Chuan Lien therefore requested that Mr. Huang Ren-chun agree to using ABB NAL as a similar product. However, in a letter dated August 3, 1998, Mr. Huang Ren-chun responded only that " regarding the DS issue, all of the information provided, after market investigation, did not conform with the facts and, in accordance with letter Chuan (87) Fa Tzu No. 0092, requested that products (C3) still be sent for review/approval." However, it was not clearly explained whether the knife switch could be used as a similar product. Tai Hsing Construction Consulting, Chung Hsing Construction Consulting, Electric Construction Industry Association, and the Joint Association of E. E. indicated that similar products could be substituted for each other in the market and in construction projects. Of these, the tube connector switch is safer but costs as much as 60% more. Chung Hsing Construction Consultants indicated more clearly that the C3 switch was a tube connection switch and design specifications showed that the 3P, 24KV, 1250A was a tube type separator switch with anti-arc equipment. It is until Mr. Huang Ren Chun explained to the Fair Trade Commission (this Commission) on September 8, 1998 that there was no need for a knife or tube connector switch as long as anti-arc equipment is used. AEG is a knife switch and therefore meets specifications. These statements clearly differ with the previous methods and requirements in project specifications. Mr. Huang Ren-chun also admitted that in the letters to Chuan Lien, he neglected to provide responses clearly indicating approval or disapproval.
Mr. Hunag Ren-chun indicated in the project specifications that the switch should be a tube connector switch. Chuan Lien Company stated in a letter to this Commission that in considering brands, apart from using C3 switch products, the knife switch did not meet specifications. Mr. Huang Ren-chun stated in letter Chuan (87) Fa Tzu No. 0092 that only the C3 switch had been approved for use. In a statement before this Commission, he indicated that AEG, one of the brands being considered, also met specifications but when Chuan Lien applied to use the switch, AEG was not told that it met the specifications for the use of similar products, which made it difficult for Chuan Lien to supply the goods. Mr. Huang Ren-chun' s acts were obviously a violation of commercial ethics, sufficient to affect trading order, and therefore a violation of Article 24 of the Fair Trade Law.
Summarized by Huang Tsung-chieh
Supervised by Tso Tien-liang
Appendix:
Professional E. E.'s Uniform Invoice No.: 05600448