Fair Trade Law Q&A - Concerted ActionsFair Trade Law Q&A - Concerted Actions| How can a violation of the Fair Trade Act be established in the absence of direct evidence of concerted action? |
Article 14, Paragraph 3 of the Fair Trade Act provides that:"The mutual understanding of the concerted action may be presumed by considerable factors, such as market condition, characteristics of the good or service, cost and profit considerations, and economic rationalization of the business conducts." In practice, it is difficult for the competent authority to obtain direct evidence establishing concerted actions among enterprises. To ensure the effective enforcement against concerted actions, the amendment to the Act on February 4, 2015 expressly authorized the competent authority to infer the existence of an agreement based on adequate economic and circumstantial evidence.
Relevant Provision: Article 14 of the Fair Trade Act