6. Which types of concerted action can be filed with the Fair Trade Commission for approval?
As specified in the Fair Trade Act, no enterprise shall engage in any concerted action; unless a concerted action meets one of the eight requirements specified in Article 15 and is also beneficial to the economy as a whole and in the public interest, and the Fair Trade Commission has given its approval. The eight types of concerted action that may be considered to be exceptions and approved are as follows:
- Unification of specifications or models of goods or services for the purpose of reducing costs, improving quality, or increasing efficiency, generally referred to as a specification or model unification concerted action;
- Joint research and development on goods, services, or markets for the purpose of upgrading technology, improving quality, reducing costs, or increasing efficiency, generally referred to as a “rationalized concerted action”;
- Development of a separate and specialized area by each business for the purpose of promoting rational management, generally referred to as a specialization concerted action;
- Establishment of agreements regarding competition in foreign markets for the purpose of securing or promoting exportation, generally referred to as an “exportation promotion concerted action”;
- Joint acts in regard to the importation of foreign goods or services for the purpose of strengthening trade, generally referred to as an “importation strengthening concerted action”;
- Joint acts limiting production and sales, quantities of equipment or prices for the purpose of meeting the demand to cope with an economic downturn when the enterprises in the same industry have difficulty maintaining their business or are overproducing, generally referred to as a “downturn-coping concerted action”;
- Joint acts for the purpose of improving operational efficiency or strengthening the competitiveness of small and medium enterprises, generally referred to as a “small and medium enterprise efficiency improvement concerted action”;
- Other joint acts required for improving industrial development, technological innovation, or operational efficiency.
Relevant article(s) of law: Fair Trade Act, Article 15
Updated at：2016-02-22 11:43:53