Fair Trade Law Q&A - Other Restrictive Trade Practices

"Causing another enterprise to refrain from competing by coercion" refers to conduct whereby an enterprise uses coercion, inducements, or other improper means to compel other enterprises to engage jointly in conduct that restrains competition, including refraining from price competition, taking part in a merger or concerted action. The purpose of such conduct is to secure common economic interests by restricting competitive business activities. Participation in mergers or concerted actions should be based upon the independent and voluntary business judgment of each undertaking. Where enterprises are compelled to participate through coercive means, such conduct constitutes a serious interference with fair market competition and is therefore prohibited under Article 20 of the Fair Trade Act.

Relevant Provision: Article 20 of the Fair Trade Act