Management of City Bus Operations of Taipei City Government accused of improper restriction of place of origin and brands when procuring an electric lift machine
Chinese Taipei
Case:
Management of City Bus Operations of Taipei City Government accused of improper restriction of place of origin and brands when procuring an electric lift machine
Key Words:
restriction of brands, discriminatory treatment, eliminate competition
Reference:
Fair Trade Commission Decision of February 3, 1999 (379th Commissioners' Meeting); Disposition (88) Kung Er Tzu No. 8713303-004
Industry:
Automobile Passenger Transport Industry (6613)
Relevant Law:
Article 19(ii) of the Fair Trade Law
Summary:
The Management of City Bus Operations of Taipei City Government (the respondent), due to the need to service and repair vehicles, conducted a bidding to procure one electric stacking machine for the purpose of transporting vehicles and large components. The qualifications restricted the place of origin and brands to goods from Europe, America and Japan, thereby eliminating bids from local companies. Therefore, it was accused of improperly eliminating competition and suspected of violating the Fair Trade Law (FTL).
According to the respondent' s response, in setting qualifications for the electric stacking machine, inquiries made at the time revealed that there were no such machines made by local companies circulating on the market, therefore it did not include local goods in the bidding. Upon learning of the complaint, and that local companies also had this production capability, it suspended the bidding process, and eliminated the restrictions on place of origin and brands.
Restrictions that eliminate local goods because of place of origin or brands would fall under Article 19(ii) of the FTL regarding acts of discriminatory treatment. However, as the tendering process was suspended by the respondent and as restrictions on the place of origin and brands were eliminated after reconsideration, it was decided in the 379th Commission Meeting that there was no need to administer punishment in accordance with the FTL. However, the Fair Trade Commission will continue to watch whether the revision of the contents affects related markets.
The respondent in a letter stated that the said improper restrictions were confirmed to have been eliminated from the qualifications in its new bidding procedures.
Summarized by Lu Li-na
Supervised by You Su-su
Appendix:
Management of City Bus Operations of Taipei City Government's Uniform Invoice No.:
03776104