Taiwan

• Pages: 1-54

CHAPTER 22

TAIWAN

Taiwan-3

CONTENTS

A.OVERVIEW ............................................................................................................ 7

1.General Policy Underlying Competition Laws ........................................... 7

a.Introduction ......................................................................................... 7

b.Principal Objectives ............................................................................ 7

c.Role of Economic Doctrines and Analysis ......................................... 7

2.Overview of Applicable Statutes ................................................................. 8

a.The TFTA ........................................................................................... 8

b.The Multi-Level Marketing Supervision Act (MLMSA) ................... 9

c.Administrative Regulations ................................................................ 9

(1)Enterprises Subject to the Regulation of the TFTA ................... 9

(2)Market Definition ....................................................................... 9

(3)Combination (Merger & Acquisition) ........................................ 9

(4)Concerted Actions .................................................................... 10

(5)Restraint of Competition and Unfair Competition ................... 10

(6)False and Misleading Representation and Symbol ................... 11

(7)Deceptive and Obviously Unfair Conduct ............................... 11

3.Overview of Structure, Independence, and

Jurisdiction of Enforcement Agencies ...................................................... 12

4.Overview of Structure, Independence, and

Jurisdiction of Judicial Authorities ........................................................... 12

5.Additional Policy and Practical Considerations ........................................ 13



B.SUBSTANTIVE LAW ............................................................................................ 14

1.Abuse of Monopoly Power ........................................................................ 14

a.The Determination of Monopoly Power ........................................... 14

(1)The Definition of Relevant Markets ......................................... 15

(2)The Assessment of Market Power ............................................ 16

b.Types of Abusive Conduct ............................................................... 16

(1)Directly or Indirectly Prevent Any Other Enterprises

from Competing by Unfair Means ........................................... 17

(2)Improperly Set, Maintain or Change the Price

for Goods orthe Remuneration for Services ............................ 17

(3)Make a Trading Counterpart Give Preferential

Treatmentwithout Justification ................................................ 18

(4)Other Abusive Conduct by Its Market Power .......................... 18

2.Concerted Actions ..................................................................................... 19

a.Horizontal Competitors ..................................................................... 19

b.Collusive Agreement ........................................................................ 21

(1)Market Conditions .................................................................... 21

(2)Characteristics of the Good or Service ..................................... 21

(3)Cost and Profit Considerations ................................................. 21

(4)Economic Rationality of the Business Conduct. ...................... 22

c.Agreements Covered ......................................................................... 22

d.Impacts on Market Function ............................................................. 22

e.Exemptions ....................................................................................... 23

f.Leniency Program and Antirust Fund ............................................... 24

(1)Disqualified Applicants ............................................................ 24

(2)Sufficiency of Evidence ........................................................... 24

(3)Fine Exemption and Reduction ................................................ 25

(4)The Marker System .................................................................. 25

(5)The Antitrust Fund ................................................................... 25