U.S. nuclear energy firm Westinghouse Electric Company is facing criticism for challenging the Czech Republic’s decision to select a Korean company as the preferred bidder for a nuclear plant project. Korea Hydro and Nuclear Power (KHNP) dismissed Westinghouse’s appeal, describing it as merely a repetition of its earlier position. In a statement, KHNP noted, “Westinghouse’s latest claim pertains to ongoing international arbitration and U.S. litigation.”

Westinghouse, wary of losing the competition to KHNP, actively sought support from the U.S. government. The move by the American firm is seen as improper, potentially reflecting protectionism that undermines free market principles. It suggests an attempt to use government intervention to preserve an American company’s competitive edge in the global nuclear power plant market.

In its appeal to the Czech Anti-Monopoly Office regarding the selection of KHNP, Westinghouse alleged that the Korean firm had infringed upon its intellectual property rights by usin
g technology licensed from Westinghouse in its APR1000 and APR1400 reactor. However, this position could be harmful to fostering fair competition and may obstruct international cooperation, including technology transfers.

Westinghouse should recognize that market entry should be secured through fair competition, not by legal maneuvers. The Czech Republic rejected Westinghouse’s claim, stating that participants cannot lodge complaints after failing in the competition.

Experts believe that Westinghouse is pressuring KHNP in an attempt to maintain an advantage in potential disputes. The U.S. has argued that adopting KHNP’s technology could lead to significant job losses in both the U.S. and the Czech Republic. Westinghouse has further claimed that such a substantial decline in jobs could adversely affect its headquarters in Pennsylvania.

Pennsylvania, a key swing state in U.S. elections, significantly influences the selection of the next American president. As a result, Westinghouse’s actions are seen as an e
ffort to garner support from U.S. political parties. It is considered inappropriate for the company to use aggressive tactics to advance its interests before the election. Major presidential candidates might feel compelled to respond to Westinghouse’s claims as the election approaches.

In October 2022, Westinghouse filed a lawsuit against KHNP in a U.S. federal court, accusing the Korean firm of infringing on its intellectual property rights. Although the court rejected the suit, Westinghouse appealed the decision, persistently obstructing KHNP’s progress. Westinghouse has faced challenges due to its limited experience in nuclear power plant construction and has been criticized for its failure to complete the Vogtle nuclear reactors in Georgia, receiving significant criticism for its inefficiencies in construction.

Brookfield Renewable Partners, a Canadian private equity fund, and uranium enterprise Cameco own 51 percent and 49 percent of Westinghouse’s shares, respectively. Given that equity funds typicall
y prioritize short-term profits, the U.S. firm has appeared increasingly eager to escalate conflicts to the maximum extent.

Westinghouse’s actions warrant strong criticism for exacerbating protectionism, prioritizing legal maneuvers over fair market competition and undermining international relations. It is important that this recent move does not adversely affect the relationship between Korea and the U.S.

These actions could undermine the principles of free market competition and international cooperation. KHNP’s success in securing the nuclear power plant project from the Czech Republic should be recognized as a notable achievement in overcoming the challenges posed by Westinghouse. We urge Westinghouse to stop its persistent legal actions and focus instead on innovation. Relying on legal measures rather than advancing technology will only damage its reputation in the global nuclear power market. Both KHNP and Westinghouse should engage in genuine dialogue to resolve the ongoing dispute amicably.

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Source: Yonhap News Agency