promulgated on June 24, 1992
These Enforcement Rules are adopted pursuant to Article 48 of the Fair Trade Law (hereinafter referred to as the "Law").
Article 2
The term "concerted action" as mentioned in Article 7 of the Law refers to an act among enterprises at the same level of production or distribution that is sufficient to influence production or the function of supply and demand in a market for goods or services.
The term "other forms of mutual understanding" as mentioned in Article 7 of the Law refers to the communications other than a contract or agreement, which, regardless of their legal enforceability, will actually result in parallel actions.
Article 3
In determining whether an enterprise constitutes a monopolistic enterprise as prescribed in Paragraph 2, Article 10 of the Law, the central competent authority shall consider the following factors:
Article 4
Any enterprise not satisfying the following requirements will not be considered a monopolistic enterprise according to the preceding article:
Although and enterprise(s) meets all of the requirements mentioned above, such an enterprise(s) shall not be considered a monopolistic enterprise if each of the enterprises individually enjoys a market share which is less than one tenth (1/10) or if each such enterprise's total sales in the preceding fiscal year was less than on (1) billion New Taiwan dollars.
The central competent authority may still determine an enterprise which, under the preceding two paragraphs should not be included, to be a monopolistic enterprise if the establishment of such enterprise or the entry into the particular goods or service market by such enterprise is restricted by laws and regulations, technology or other conditions that may impede competition.
Article 5
When calculating the market share of an enterprise, information concerning the productions, sales, inventory, import and export value (volume) of each enterprise and the relevant market shall be taken into account.
Information necessary for the calculation of the market share may be based on such information as obtained upon investigation by the central competent authority or that recorded in other government agencies.
Article 6
The sales amount as mentioned in Subparagraph 3, Paragraph 1, Article 11 of the Law refers to the total sales amount of an enterprise.
The "total sales amount" as used in the preceding paragraph shall be based on the information obtained upon investigation by the central competent authority or that recorded in other government agencies.
Article 7
Application for an approval of a combination of enterprises according to Paragraph 1, Article 11 of the Law shall be filed:
Article 8
Enterprises applying for an approval of a combination according to Paragraph 1, Article 11 of the Law shall submit the following documents to the central competent authority:
The form application mentioned in the preceding paragraph shall be stipulated by the central competent authority.
Article 9
If the information submitted by enterprises applying for approval of combination is incomplete or inaccurate, the central competent authority may state reasons therefor and require supplement or correction of such information within a prescribed time limit and may dismiss the application in case the required supplement or correction is not made in time.
The supplement or correction mentioned in the preceding paragraph may be submitted only once for each application.
The two-month time limit prescribed in Paragraph 3, Article 11 of the Law shall commence from the date of receipt of the application by the central competent authority, or from the date of receipt of the supplement or correction, if any information is incorrect or incomplete and supplement or correction of such information is required by the central competent authority.
Article 10
If it deems necessary, the central competent authority may publish its approval or disapproval of applications for a combination of enterprises in the government gazette.
Article 11
Applications for an approval of concerted actions pursuant to the provision of Article 14 of the Law shall be made jointly by the enterprises participating in the concerted actions or through their association or agent with a power of attorney.
Article 12
The following documents shall be submitted by the participating enterprises for an approval of a concerted action in accordance with the provision of Article 14 of the Law:
The application form mentioned in the preceding paragraph shall be stipulated by the central competent authority.
Article 13
The impact evaluation report of the concerted action as referred to in paragraph 7 of the preceding article shall state:
Enterprises applying for an approval pursuant to Subparagraph 1 or 3, Article 14 of the Law shall provide in the impact evaluation report concrete expected effects in cost reduction, quality improvement, efficiency gains or promotion of reasonable operation to be attained by the implementation of the concerted actions.
Article 15
Enterprises applying for an approval pursuant to Subparagraph 2, Article 14 of the Law shall provide the following information in the impact evaluation report:
Article 16
Enterprises applying for an approval pursuant to Subparagraph 4, Article 14 of the Law shall provide the following information in the impact evaluation report:
Article 17
Enterprises applying for an approval pursuant to Subparagraph 5, Article 14 of the Law shall provide the following information in the impact evaluation report:
Article 18
Enterprises applying for an approval pursuant to Subparagraph 6, Article 14 of the Law shall provide the following information in the impact evaluation report:
Article 19
Enterprises applying for an approval pursuant to Subparagraph 7, Article 14 of the Law shall provide the following information in the impact evaluation report:
Article 20
If the information submitted by enterprises applying for the approval of a concerted action is incomplete or inaccurate, the central competent authority may state reasons therefor and request the said enterprise to supplement or correct all of the information within a prescribed time limit or may otherwise dismiss the application if the required supplement or correction is not made in time.
The supplement or correction in the preceding paragraph may be submitted only once for each application.
Article 21
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.
Article 22
Any enterprise applying for an extension pursuant to Paragraph 2, Article 15 of the Law shall submit the following documents:
When the application for extension is approved, the central competent authority shall state in its approval the reference number of the original approval and the effective period for registration and public announcement.
Article 23
The following factors shall be taken into consideration when determining whether there is due cause as referred to in Subparagraph 2, Article 19 of the Law:
The "restrictions" as used in Subparagraph 6, Article 19 of the Law refer to tie-in, exclusive dealing, territory, customer or utilization restrictions, and other restrictions restraining trading counterparts' business operations.
In order to determine whether the restrictions mentioned in the preceding paragraph are reasonable, the totality of such factors as intent, aim, market power of the parties, structure of the relevant market, nature of the goods and the effect on competition in market resulting from implementation of such restrictions shall be considered.
Article 25
In case of any violation by an enterprise of Paragraph 1 or 3, Article 21 of the Law, the central competent authority may order the enterprise to publish advertisements showing the correction notice in accordance with Article 41 of the Law.
Weighing the level of effect of the original advertisements, the central competent authority shall decide the methods, frequency and period of the advertisements mentioned in the preceding paragraph.
Article 26
To make the notification prescribed in Subparagraph 1, Paragraph 1, Article 27 of the Law, a written notice shall be used.
The above written notice shall contain the following information:
Except in cases of urgency, service of a written notice shall be make at least forty-eight (48) hours prior to the date of required presence.
Article 27
The notified party referred to in the preceding Article may designate an agent to make statements. If it is deemed necessary, however, the central competent authority may order him to appear in person.
Article 28
After the notified party has appeared and made his statements pursuant to Article 26, the central government authority shall have the statements transcribed and order him to sign on the transcripts thereof; provided that if he cannot sign, the statements may be affixed with a seal or be fingerprinted by the notified party after the reason therefore has been recorded. If the notified party refuses to sign, affix a seal or fingerprint the transcript, such facts shall be stated in the transcript.
Article 29
Notification by the central government authority pursuant to Subparagraph 2, Paragraph 1, Article 27 of the Law shall be make in writing and contain the following information:
Article 30
The central competent authority, upon receipt of account books, documents and other necessary information or evidence submitted by relevant agencies, organizations, enterprises or individuals, shall issue a receipt therefor.
Article 31
In seeking approval for exemption of acts from being subject to the Law according to Paragraph 2, Article 46 of the Law, the governmental enterprise, public utility or communication and transportation enterprise shall submit, in writing, to the authority with jurisdiction over the business of respective enterprises at the central government level, for reviewing and transferring to Chinese Taipei, the substance of such acts, the article(s) of the Law to be exempted and rationale therefor with relevant information and documents.
When transferring the application made pursuant to the preceding paragraph, the authority with jurisdiction over the business of respective enterprises at the central government level shall provide its preliminary opinion thereto.
If the application made in accordance with Paragraph 1 above is approved by Chinese Taipei, the authority with jurisdiction over the business of respective enterprises at the central government shall notify the central competent authority under the Law with a copy of notification to the applicant enterprise.
Article 32
These Rules shall come into force on the date of promulgation.