Newsletter
FTC TO DRAFT RULES ON ACCESS TO ESSENTIAL FA-CILITIES
With technological advance and the develop-ment of the knowledge-based economy, the issue of fair access to essential facilities has generated much debate. One example is the disputes over access to Chunghwa Telecom's networks for Taiwan's three private fixed-network operators, in which the private operators have claimed that their operations have been impeded. Recently, petroleum product suppliers have also expressed the hope that filling stations can be classed as essential facilities.
The Fair Trade Commission (FTC) has stated that in some sectors where monopoly conditions prevail, such as transportation, telecommunica-tions, public utilities or the Internet, enterprises controlling key "bottleneck" facilities—e.g. roads, bridges, ports, airports, telecommunica-tions infrastructure, or gas pipe networks—that are essential to the operations of upstream and downstream markets and new competitors, are in a position to engage in predatory pricing. If such "gatekeeper" enterprises set unreasonable price levels for access to essential facilities, this will adversely impact the overall normal develop-ment of industries and of technical innovation.
Therefore, the FTC intends to examine whether technological and sectoral development in the above sectors is being harmed by abuse of con-trol over essential facilities. It will also clarify the definition of essential facilities, and draw up related standards to regulate competition, in or-der to ensure that prices charged for access to essential facilities are fair and reasonable, and to promote fair competition in such sectors.