The FTC, at its 368th Commissioners Meeting on Nov. 25, 1998, reviewed the complaint against TWNIC for charging unreasonable website name fee.

In FTC's opinion, TWNIC is a company providing website name and website registration services, and collecting service fees. It is an independent entity, regularly operating for economic purposes. It is thus deemed an enterprise as Article 2 of the FTL says, and the FTL shall apply.

The Website name and registration system is of a hierarchical structure, with INTERNIC managing at the international level, APNIC managing at the Asia-Pacific Region, and TWNIC handling affairs in Chinese Taipei. TWNIC is the only one handling website registration under <.com.tw>, <.net.tw>, and in Chinese Taipei.

However, Internet is an emerging channel now cutting across regions and boundaries. The economic activities over Internet should not be judged from traditional perspective that uses geographic or political boundaries to define markets.

TWNIC is the only agency providing such services for website registration. But the general public can still register to the APNIC and INTERNIC. It is an international practice to charge service fees for the registration of <.com>, <.net>, , and TWNIC is no exception. No other acts of TWNIC are considered to have violated fair competition. It would be difficult to judge that TWNIC has violated the FTL simply for charging website registration fee.

To avoid similar disputes, and to move in line with international trend to incorporate the website management under the competition mechanism, the FTC now presents three opinions for the agency-in-charge as reference. (1) Website registration and allocation is an exercise of public power. If the business is handled by a private entity under its own regulatory system, the entity shall be a non-profit organization with credibility. Restrictive competition shall be also avoided. (2) Under the current system, TWNIC is the only unit providing website registrations. Its service fee should be under the supervision of the agency-in-charge with a regulatory scheme. (3) TWNIC operates both the website registry and registrar businesses. In order to introduce market competition, the two businesses shall be separated. Registrar business shall open to operations by others.