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The Fair Trade Commission launched a full-scale investigation to confirm the allegation that Lotte Healthcare stole a nutrient dispenser (quantity supply) from startup Algocare.
According to the industry on the 6th, the Fair Trade Commission Lotte Holdings (004990), Lotte Healthcare, and Canon Korea, an affiliate of Lotte Group, to conduct on-site investigations. Algocare reported to the Fair Trade Commission on the 25th of last month to investigate the case.
Algocare held an investment meeting with Lotte Healthcare over the cartridge-type nutrient dispenser product that was being developed in 2021. The nutrient dispenser introduced by Lotte Healthcare at ‘CES 2023’ earlier this year copied its product that was held at the time of the meeting in 2021, and Algocare claims that it will proceed with legal action. However, Lotte Healthcare countered that the nutrient dispenser was a common concept abroad and had an idea from the time of reviewing the new business.
The Fair Trade Commission is expected to look into whether Lotte Healthcare unfairly interfered with Algocare’s business activities. The Enforcement Decree of the Fair Trade Act defines an act of unfairly using the technology of another business operator as an act of interfering with the business activities of that business operator to the extent of making it very difficult. If there was a subcontracting transaction between Algocare and Lotte Healthcare, there is a possibility of looking into whether the subcontracting law was violated.
Algocare, a healthcare startup founded in November 2019, has previously won a CES Innovation Award for its controversial product. The product is expected to be released in March.
