Application by Ping Tung County Gravel Quarry Business Association on behalf of seventy and more gravel businesses in the Kao P'ing River quarry area for exemption approval as per Article 14 of the Fair Trade Law, of their concerted action to form an unified management company
Chinese Taipei
Case:
Application by Ping Tung County Gravel Quarry Business Association on behalf of seventy and more gravel businesses in the Kao P'ing River quarry area for exemption approval as per Article 14 of the Fair Trade Law, of their concerted action to form an unified management company
Key Words:
concerted action, approval, quarrying
Reference:
Fair Trade Commission Decision of September 16, 1998 (358th Commission Meeting); Decisions (87) Kung Lien Tzu Nos. 01, 014 and 015
Industry:
River Quarry Industry (0921)
Relevant Laws:
Summary:
Background:
Over time, Chinese Taipei has become overly dependent on the river beds as a source for gravel. As such, the river bed gravel source has been seriously depleted and is made worse by serious illegal quarrying that must be banned or stopped. The development of land quarry source has been difficult and the development of sea gravel source has no real value. Also, the importation from abroad or the transportation of gravel from the eastern part of Chinese Taipei is neither economical nor sufficient to meet the urgent demands for gravel. Thus, for the protection of the river beds and to meet the demand for gravel, the Water Administration has implemented an overall quarry management program for six major rivers in Chinese Taipei including Chuo Shuei River, Kao P'ing River, Ta Chia River, Ta An River, Hua Lien River, and Wu River. In compliance with the government's "Kao P'ing River quarry management program", the seventy plus gravel businesses in this case have individually applied to the government to jointly establish three quarry management companies, i.e, Shu Ch'iao, Long Wei Riverang, and Wei Tao. Application has been filed with the Fair Trade Commission in order for these companies to obtain quarry right for all sections of the Kao P'ing River and for them to allocate quarry volume and other concerted acts.
Content of approval:
The Fair Trade Commission (this Commission) hereby approves the application allowing the participating enterprises to establish a new joint venture company to engage in concerted action regarding joint quarry and volume allocation which is beneficial to the public interests and the economy as a whole. Approval of the application is in accordance with Articles 14(2) and 14(3) of the Fair Trade Law (FTL). In addition, pursuant to FTL Article 15, this Commission may impose certain obligations, conditions, and restrictions on the approval. Accordingly, it is decided that the approval of the application be valid through December 31, 1999.
Reasons for approval:
The process was undertaken by the applicant and seventy plus participating gravel businesses to follow the Water Administration's policy to overhaul and manage the river beds. The Water Administration has initiated the policy in consideration of the vast quarry area that has been difficult to manage and to be protected against illegal quarry activities which seriously jeopardizes the safety of flood-prevention work and bridges. Furthermore, because land quarry is frequently curbed for environmental protection reasons and as the river quarry resources are becoming scarce and more valuable, the government has planned to divide Kao P'ing River into three quarry areas, and to grant legal quarry rights to joint management companies formed by businesses already carrying out quarrying or processing within the area. This is an important consideration for granting the aforementioned approval. In addition to legalizing quarrying of gravel, this approval helps to reduce the cost of quarrying and also effectively stops illegal quarrying within the managed areas. It also works to prevent the damage to flood-prevention structures, bridges, irrigation along the riverbank, the lowering of underground water level and other public safety problems caused by unmanaged quarrying. There may also be positive effects for the leading off of rivers and flood prevention and reducing the costs to the society in eliminating the need to guard against illegal quarrying. It is thus considered beneficial to the public interest and the economy as a whole without the disadvantage of imposing substantial restriction on competition. In addition, for the purpose of preventing any potential disadvantage incurred among the applicants or with their external transaction and in consideration of the convenience for this Commission's supervision, certain obligations are attached to the approval.
Summarized by Liu, Chin-Chih
Superviced by Tzuo, Tien-Liang