3. What are the relevant factors considered in determining the approval or rejection of a concerted action?
- According to Article 16 of the Fair Trade Act, the competent authority may impose conditions or undertakings in the approval of a merger notification. The approval shall specify a time limit not exceeding five years. The enterprises involved may, with justification, file a written application for an extension thereof within three to six months prior to the expiration of such period. However, that the term of each extension shall not exceed five years. In addition, in order to respond to economic changes as well as management supervision, it is stipulated in the Articles 17 and 18, that the FTC may revoke the approval, alter the contents of the approval, or order the enterprises involved to cease from continuing the conduct or rectify its conduct, or to take necessary corrective actions, if the cause for approval no longer exists, the economic condition changes, the enterprises involved engage in any conduct beyond the scope of approval, or violate the conditions or undertakings imposed. Moreover, the FTC shall voluntarily make public the approvals, and their relevant conditions, undertakings, and time limits.
- In accordance with the provisions of this Act, when granting special approval to the application of concerted actions, the Commission should take into account the positive contributions to the overall economy and public interest after the concerted action has been taken, as well as the adverse impact on the restriction of market competition. Only when the advantages outweigh the disadvantages, can such concerted actions be approved.
- The considerations to the overall economy and public interest as mentioned in the preceding paragraph include the following: the degree by which the overall level of industrial technology may be increased after the concerted action has been approved; the amount of change in the prices of goods or services; and the increase in user' convenience, as well as public interests such as safety, sanitation, and environmental protection.
- The considerations on the impact of the restriction of market competition include the following: obstruction against enterprises that are not part of the concerted action; the effect on market competition or on up-stream and down-stream industries; the risk of relevant enterprises to abuse their market position; and the risk of infringing upon the interests of the consumers and other related enterprises.
Relevant article(s) of law: Fair Trade Act, Article 15,16,17, and 18
Updated at：2020-04-13 13:47:10