The Executive Yuan today approved draft amendments to the Fair Trade Act that would give authorities more muscle to prosecute anti-competitive practices.
The law in its current form has been unable to keep up with socioeconomic changes over the years, said Premier Sean Chen. In many instances of transnational antitrust cases, officials have had inadequate investigation tools and insufficient time to take action, which not only impair the government's authority but also hamper industrial development.
Under the revisions, the Fair Trade Commission (FTC) would be empowered to carry out raids and seize items if it suspects cases of restraints on competition. Effective law enforcement must be backed by appropriate investigation tools, the premier remarked.
The premier reminded the FTC that once the amendments receive legislative approval, officials must still exercise the powers with discretion, being mindful of the impact of raids and seizures on companies. He also instructed the Ministry of Justice and the Executive Yuan's Legal Affairs Committee to research the issue in more detail.
Under the proposed amendments:
1. The definition of enterprise is modified. The name of the competent authority is also modified to accommodate the new government structure. Stipulations concerning local competent authorities are deleted. (Articles 2 and 6)
2. The criteria for determining a monopolistic enterprise are modified. (Article 8)
3. The threshold for filing a merger with the competent authority should include sales from related enterprises. The competent authority may extend the period for reviewing such merger if necessary. The amendment also adds other circumstances where enterprises do not have to file a merger with the competent authority. (Articles 11 and 12)
4. Conditions under which concerted actions may be permitted are modified. (Articles 15-17)
5. Resale price maintenance is prohibited; types of restraints on competition are modified; and new forms of unfair competition are included under the act. (Articles 19, 20 and 23)
6. Stipulations concerning false advertisements are modified, prohibiting enterprises from using false or misleading representations that would influence trade in goods. Stipulations concerning forgery are modified. (Articles 21 and 22)
7. The competent authority may apply for search and seizure warrants to investigate restraints on competition. (Article 28)
8. Stipulations concerning management and supervision of multi-level sales operations are added. (Articles 30-35)
9. Various fines and penalties have been stipulated according to the extent to which a violation affects trading order. (Articles 47, 48, 50 and 51)
10. Stipulations are introduced on the period during which authorities can prosecute anti-competitive practices. (Article 49)