FTC Increased Fine Payment Up To 5 Hundred Million For Abuse of Monopolistic Position.

  The Fair Trade Commission (“FTC”) managed to increase fine payment to a great extent!  The amount of fine payment imposed by the FTC for violations has been fixed in a range from NT$50 thousand to NT$25 million; however, a different fine calculation will be formulated for various violations, among which the abuse of monopolistic position will incur the biggest amount of fine payment of no less than NT$10 million and no more than NT$5 hundred million, representing a 20 times sharp increase.  Likewise, the fine payment for violations with respect to concerted action is also increased to an amount of NT$500 thousand at least and NT$2 hundred million at most.  The FTC was scheduled to submit the amendment draft to the Executive Yuan for deliberation before the end of October 2006.

  In EU and Korea, much heavier fine punishment over NT$1 billion or even NT$10 billion is imposed on abuse of monopolistic position by large-sized enterprises.  In view of international enterprises’ growing participation into Taiwan market, to increase the fine payment on abuse of monopolisti c position becomes a prerequisite of intimidating such violation.  The same policy should also be practiced for concerted action that significantly influences the trading order likewise.  (2006.10)

/CCS