Administrative settlement between Matra Transport Corporation and the Fair Trade Commission for Matra's alleged violation of the Fair Trade Law
Chinese Taipei
Case:
Administrative settlement between Matra Transport Corporation and the Fair Trade Commission for Matra's alleged violation of the Fair Trade Law
Key words:
boycott, obviously unfair, superior position, improper obstruction
Reference:
Fair Trade Commission Decision of 7 January 1998 (the 323rd Commission Meeting); Letter (87) Kung Er Tzu No. 8505803-030
Industry:
Other Transportation Vehicles and Parts Manufacturing and Repair Industry (3290)
Relevant Laws:
Summary:
On 27 March 1996 the Taipei Rapid Transit Corporation [TRTC] and Matra Transport Corporation of France [Matra, a French company] closed their price negotiations on the "Mass Rapid Transit [MRT] System Mucha Line VAL Patented System and Interfacial Electrical Equipment Outsourcing Maintenance and Repair Agreement" (the Agreement). Matra and the Taipei City Government Department of Rapid Transit Systems then had a dispute regarding inspection and acceptance. Matra and TRTC did not sign the Agreement, which resulted in maintenance difficulties with the automatic control system of the MRT Mucha Line. TRTC asked Matra's subcontractors to provide a portion of the electrical equipment parts and maintenance work; however, the subcontractors apparently were restricted. Consequently, TRTC had to undertake the MRT Mucha Line electrical equipment maintenance. TRTC believed Matra had abused its superior position regarding the MRT Mucha Line patented automatic control system and had improperly obstructed TRTC. TRTC also contended Matra had also engaged in restricting its subcontractors from providing spare parts and maintenance services.
This Commission investigated the matter and found that the alleged violation of the Fair Trade Law by Matra was probable due to its refusal to provide maintenance work after the MRT Mucha line had begun formal operations. However, the Fair Trade Commission took the following circumstances into consideration when it decided what stop was to be taken that there remained the uncertainty of facts and legal applicability, and that public interests obviously overrode the private interests of the parties in this case since the maintenance agreement directly concerned the welfare and safety of the MRT Mucha Line passengers. After having considered the above circumstances, the 314th Meeting of this Commission decided, upon Matra's proposed application to this Commission for an administrative settlement and in light of public interests and administrative goals, to suspend its investigation and requested Matra and TRTC to resume the negotiation of the Agreement. In addition, considering the enforceability of the administrative settlement, the current laws and regulations and the requirement of public interests, this Commission also decided to amend Matra's proposed conditions in its application for administrative settlement and requested Matra to confirm if there was an agreement on such amendment.
In its 22 December 1997 letter, Matra indicated its agreement on this Commission's amendment. Thus, this Commission, in its 323rd Meeting of 7 January 1998, decided to reach an administrative agreement with Matra. According to the agreement, this Commission would suspend its investigation proceedings on the condition that Matra sign the maintenance agreement for the MRT Mucha line with TRTC before 21 March 1998. With respect to the process of negotiations through the execution of the Agreement between the parties, this Commission would take relevant actions, within the proper scope of intervention, to make the parties execute the agreement as soon as possible in order to meet the pressing maintenance needs. If the maintenance agreement could not be signed before the deadline due to the fault of either party, this Commission would not rule out the possibility of resuming the investigation to reach a decision on the case.
Summarized by Liu, Nai-jung
Supervised by You, Su-su
Appendix:
Matra Transport Corporation’s Uniform Invoice No.: 22959722