OECD kpcdb

1. Scope

 

Article 9 prohibits monopolistic enterprises from engaging in price-fixing, directly or indirectly preventing other enterprises from competing by unfair means, extracting an unjustified preferential treatment from a trading counterpart, or other abusive conduct.

2. Assessment

Under Article 7(1), “monopolistic enterprise” is defined as any enterprise that faces no competition or has a dominant position to enable it to exclude competition in the relevant market. Two or more enterprises shall be deemed monopolistic if they are not in fact engaged in price competition with each other and as a whole have the same status as a monopolistic enterprise defined in Article 7(1).

 

Article 8 further specifies the market share thresholds for a finding of a dominant position: 1) the market share of the enterprise in the relevant market reaches one half of the market; 2) the combined market share of two enterprises in the relevant market reaches two thirds of the market; and 3) the combined market share of three enterprises in the relevant market reaches three fourths of the market.

 

An enterprise shall not be deemed as monopolistic if the market share of any individual enterprise does not reach one tenth of the relevant market as described above, or its total sales in the preceding fiscal year are less than the threshold amount announced by the FTC The publicly announced threshold amount is NTD 2 billion.

3. Remedies and sanctions

See Section I.4 on Remedies and Sanctions.

The FTC has made a total of 15 decisions relating to abuse of dominance between 1992 and 2016.

 

 

* This information is based on Competition Law in Asia-Pacific: A Guide to Selected Jurisdictions (2018).