4. How are "small or medium-sized enterprises" determined under Article 15(1)(vii) of the Fair Trade Act ?
Article 15(1) of the Act provides that enterprises shall not engage in any concerted actions except under certain exceptional circumstances where beneficial to the economy as a whole and in the public interest and where approved by the central competent authority, the Fair Trade Commission. Article 15(1)(vii) specifies one such circumstance as "joint acts for the purpose of improving operational efficiency or strengthening the competitiveness of small and medium enterprises." To determine qualification as a small or medium enterprise, an enterprise can file an application for approval of concerted actions under the above stated provision. According to Article 21 of the Enforcement Rules of Fair Trade Act, the identification of a small or medium sized business as referred to in Article 15(1)(vii) of the Act shall be made in accordance with the criteria set forth in the Act for Development of Small and Medium Enterprises. Under the current standards adopted by the Small and Medium Enterprise Administration of the Ministry of Economic Affairs, the determination criteria vary with industry, capitalization, and number of employees, and the factors considered are too numerous to list in detail here.
Relevant article(s) of law: Fair Trade Act, Article 15; Enforcement Rules of Fair Trade Act, Article 21; Act for Development of Small and Medium Enterprises
Updated at：2016-02-22 11:36:12