Correcting Program to Taiwan Stock Exchange Corporation for its charging stock market information service fees
Chinese Taipei
Case:
Correcting Program to Taiwan Stock Exchange Corporation for its charging stock market information service fees
Key Words:
monopoly, improperly abusing the monopoly status, stock market information service fees
Reference:
Fair Trade Commission Decision of January 22, 1997 (the 273rd Commission Meeting); Letter (86)-Kung-I-00405
Industry:
Securities Financing Business (6614)
Relevant Laws:
Article 9 of the Fair Trade Law
Summary:
1.Taiwan Stock Exchange Corporation (TSE), is a monopoly enterprise in the centralized securities market publicly announced by the Fair Trade Commission. Securities transactional information is a by-product resulted in the course of promoting securities transactions by TSE. However, TSE by reason of convenience in managing the use of securities information and in maintaining transactional order of the securities market, requests the information companies to report the number of their terminals as a basis for charging fees. It is alleged that TSE’s behavior is to take advantage of its monopoly status in the securities market, and to expand its peripheral businesses, in order to increase TSE's revenue, even to make up the losses of major business of TSE. Therefore, the behavior of TSE to provide securities transactional information and to charge fees was alleged as behaviors of improperly deciding prices and abusing the monopoly status.
2.Handling procedures and decision
(1)TSE charges fees for using transactional information based on "Measures of Management for Use of Transactional Information" and "Standards for Charging Fees for Using Transactional Information". The regulation and amendment of the “Measures” and the “Standards” had previously been submitted to the Securities and Commodities Management Commission of the Ministry of Finance for approval before they were publicly announced for implementation. Therefore, this Commission thought that TSE’s standards for charging fees had been subject to the supervision of competent authority, and TSE did not have complete discretion under the administrative guidance. However, the securities transactional information should be made public. Its charges should be cheap and should not have downward extension. Thus, this Commission had decided to proceed correction measure. Further, in consideration of the various size of the information enterprises, this Commission was of the opinion that TSE might regulate and fix fee standards in tiers.
(2)Later, TSE submitted its proposal of adjustment. Its liberalization of businesses and broadening the scope of public transaction in deed may have made the securities transactional information universally available to the public. However, there were still restrictions on the qualifications of the information enterprises. Although it is necessary for such consideration, it is still worthy of discussion on whether it will constitute barriers for participation and promotion. As to the charges after TSE's adjustment, it only charges the information company by fixed fees, and does not charge individual client. Additionally, in consideration of the size of the information companies, TSE had adopted fixed fees in 25 tiers. Thus, it should not have the occurrence of downward charges.
(3)In sum, this case is decided on the basis that the TSE does not violate the Fair Trade Law, and the correction is imposed merely to make securities transactional information universally available to the public. Besides, TSE has offered guidances to comply with this Commission's correction. With regard to liberalization of information and the participation and promotion qualifications of the information companies listed in "The Special Division on Removal of Market Restrictions and Promotion of Market Competition", this Commission will further study its reasonableness.
Summarized by Chen, Yun-shang
Supervised by Hu, Kuang-yu
＆: For information of translation, click here
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