Taiwan and Japan ink Memorandum of Understanding Regarding the Application of Competition Laws

In November 2015, Taiwan and Japan signed the Memorandum of Understanding Regarding the Application of Competition Laws in Tokyo, Japan, the 10th instrument with respect to cooperation of competition laws signed by the Taiwan Fair Trade Commission (FTC) with foreign countries including Australia, New Zealand, France, Mongolia, Canada, Hungary, Republic of Panama, and the Republic of Colombia.  This MOU was signed in English language, containing 12 Articles mainly relating to Taiwan-Japan cooperation in enforcement activities, coordination, cooperation regarding anti-competitive activities in the area of a side that adversely affect the interests of the authority in the area in which the other side is located, avoidance of conflicts, and protection of confidentiality of the interchanged information. 

The Taiwan FTC pointed out that Taiwan and Japan have had close economic and trade relations and are the significant trading partners to each other.  It is extremely common to see the two countries cooperate in transnational enterprise activities.  In recent years, the companies or suppliers of from the two countries have been confronting the problems of transnational anti-competition problems from time to time, and thus to strengthen the coordination and cooperation between the competent authorizes of the two countries has been Taiwan’s top task.  Based on their long-term and amicable relationship, the competent authorities of Taiwan and Japan have been conducting interchange in the occasions of Organization for Economic Co-operation and Development (OECD), the International Competition Network (ICN), the Asia-Pacific Economic Cooperation (APEC), and the East Asia Top Official's Meeting on Competition Policy (EATOP).  Also, by taking chance of taking part in Taiwan-Japan economic and trade conference, the two countries have been holding bilateral staff-level meetings to enhance communication and interchange.  It is both sides’ consensus that Taiwan-Japan MOU is signed to seek closer cooperation. 

As a result of the increasing economic freedom around the world, transnational acquisition and merger or cross-border anti-competition practices are likely to affect the competing order of the markets of several countries involved at the same time.  For effectively manage transnational cases involving anti-competition elements, the competent authorities of competition laws of countries worldwide have been vigorously reinforcing the coordination and cooperation between the enforcement authorities by signing agreements.  Signing of this MOU will facilitate harmonization of the competition laws enforcement of both Taiwan and Japan and further safeguard and increase both sides’ economic and trading performances.

The Memorandum of Understanding Regarding the Application of Competition Laws represents the first MOU that the FTC has signed with a developed country in Asia with a view to expanding Taiwan’s closer cooperation with the competent authorities of other countries in Asia and to promoting bilateral and multilateral law-enforcement cooperation of competition laws.  (November 2015)
/CCS