COMMON QUESTIONS AND ANSWERS

Exemptions From the Provisions of Competition Law

Chinese Taipei


EXEMPTIONS FROM THE PROVISIONS OF YOUR COMPETITION LAW

Actions authorised under other types of law

13. If there is a potential conflict between your competition law and other laws, how do you determine which law takes precedence? Please specify the law and the provision of that law.
A: According to Article 46 of FTL, the provisions of this law shall not apply to any act performed by an enterprise in accordance with other laws.
the provisions --
Article 46 of FTL.

Import Cartels or Agreements Between Importers

14. Does your competition law exempt or partially exempt agreements aimed at controlling the flow of imports into your country? Please specify the law and provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
A: Yes. Article 14 (1)-5 of FTL.( This is also one of the gateways provided under Article 14 for the possible exceptional approval.)
type of behavior is this provision aimed at and the nature of the provision --
Firstly, unless the practice is under the approval of FTC, it is prohibited. (Article 14 provides 7 gateways for the exceptional approval.)

Export Cartels or Agreements Between Exports

15. Does your competition law exempt or partially exempt agreements between exporters from your country? Please specify the law and the provision of that law. What type of behaviour is this provision aimed at and what is the nature of the provision?
A: Yes. Article 14(1)-4 of FTL.
the type of behavior is this provision aimed at and the nature of the provision --
Please refer to question 14.

Specific products or industries

16. Are there any specific products or industries (e.g. agriculture, international shipping) which are exempted or partially exempted from your competition law? Please list the sectors exempt or partially exempt and the nature of the exemption.
A: Yes.
Sectors which are partially exempted     Nature of exemption
Communications and transportation enterprises Article 46(2) of FTL
Government enterprises Article 46(2) of FTL
Public Utility Article 46(2) of FTL

Small business

17. Are there any exemptions or partial exemptions from your competition law for small and medium size businesses? Please specify the law and the provision of that law. What is the nature of the exemptions? And how is small business defined?
A: Yes. Article 14(1)-7 of FTL
the nature of the exemptions --
This is one of the gateways provided under Article 14 of FTL. For the nature, please refer to question 14.
the definition of small business --
According to Article 21 of the Enforcement Rules of FTL, the small and medium-sized enterprises mentioned in Subparagraph 7, Article 14 of the Law shall be determined in accordance with the statute for Development of Small and Medium-sized Enterprises. Please see Attachment F.

Rationalisation cartels or agreements

18. Rationalisation cartels are agreements between firms, and authorised by the government, to close down inefficient plants, reduce capacity and reorganise production in order to increase overall industry efficiency and performance. Does your competition law contain any exemptions or partial exemptions for rationalisation cartels? Please specify the law and the provision of that law.
A: Yes. Article 14(1)-2 of FTL (For the nature, please refer to question 14.)

Depression cartels or agreements

19. Depression cartels are agreements between firms and authorised by the government to reduce production to meet a temporary downturn in the market. Does your competition law contain any exemptions or partial exemptions for depression cartels? Please specify the law and the provision of that law.
A: Yes. Article 14(1)-6 of FTL (For the nature, please refer to question 14.)

Government agencies

20. Are Government agencies exempted or partially exempted from your competition law? Please specify the law and the provision of that law. And what is the nature of the exemptions?
A: No.

Practices authorised by administering bodies

21. Is there any provision for competition agencies or the relevant ministers exempt specific activities from the competition law? Please specify the law and the provision of that law. Please specify the criteria which are applied in deciding whether to exempt activities or not.
A: Yes. Article 46(2) of FTL.
the criteria for exemption --
There are five-year transmission period for public utility or communications and transportation enterprises to adjust.

Intellectual property

22. Does your competition law contain any exemptions for actions relating to the protection of intellectual property rights? Please specify the law and the provision of that law. And what is the nature of this exemption?
A: Yes. Article 45 of FTL.
the nature of exemption --
As long as the intellectual property rights owners reasonably exercise their rights in accordance with the Copyright Law, the Trademark Law, or the Patent Law, the FTL provisions are not applicable.

Labour markets

23. Does your competition law exempt or partially exempt labour market activities? Please specify the law and the provision of that law. And what is the nature of the exemptions?
A: Yes. Article 2 of FTL.
the nature of exemption --
In situations where Labors or Unions engage in transactions by providing goods or services, they are subject to the FTL when their conducts go beyond employment relationship and aim at the restraints of competition.

Other exemptions

24. Are there any other exemptions from your competition law other than those outlined above? Please specify the law and the provision of that law. Please list the other exemptions from your competition law.
A: No.