Fair Trade Law Q&A - Concerted ActionsFair Trade Law Q&A - Concerted Actions| In determining whether concerted conduct violates the Fair Trade Act, does it matter if the participating enterprises hold relatively small market shares? |
Pursuant to Article 14, paragraph 1 of the Fair Trade Act, concerted action is limited to conduct among competing enterprises at the same level of production or distribution that is capable of affecting the market functions relating to production, trade in goods, or the supply and demand of services. Accordingly, concerted conduct may give rise to a violation where the participating enterprises possess sufficient market influence to affect competitive conditions or the supply-demand order within the relevant market. In assessing whether such conduct is capable of affecting market functions, market share constitutes one of the relevant factors to be considered.
Relevant Provision: Article 14 of the Fair Trade Act.