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In line with the 2002 FTL amendments, amendments to the FTL Enforcement Rules were announced on 19 June 2002, with the following key points:
The term "industry association" is defined (Article 2).
The former Article 3, stating circumstances under which an enterprise is not to be regarded as a monopoly enterprise, is deleted.
The previous year's "sales amount" of an en-terprise involved in a business combination shall be determined on the basis of "total op-erating revenue," in accordance with generally accepted accounting principles (Article 6).
Where an enterprise participating in a business combination for which filing is required has not yet been established, the existing partici-pating enterprises shall file on its behalf (Ar-ticle 7 Paragraph 2).
New provisions define additional documents to be submitted for combination filing: (1) a statement of the overall economic benefits of the intended combination and the disbenefits of impeding competition; (2) the main future business plans of the participating enterprises; (3) details of other investments made by the participating enterprises; (4) where shares in the participating enterprises are listed on the Taiwan Stock Exchange or traded on the over-the-counter market, the most recent prospectus or annual reports; and (5) infor-mation on horizontal competitors of the par-ticipating enterprises or on the market struc-ture of upstream and downstream enterprises (Article 80 Paragraph 1 Items 5 to 10).
Where information filed regarding a business combination is not in accordance with the relevant provisions or is incomplete, and the enterprises concerned fail to supplement the required information within the period noti-fied by the FTC, or after amendment the in-formation provided is still incomplete, the FTC will not accept the filing (Article 9).
The term "financial institution" is defined (Article 10).
A provision is added defining the date on which a filing containing complete informa-tion is accepted (Article 11).
When enterprises apply for permission to en-gage in concerted action, information on the horizontal competitors, or the market structure of upstream and downstream enterprises must now be included among the documents to be submitted, as an important basis for judging whether the concerted action is in the overall economic and public interest (Article 14 Paragraph 1 Item 7).
The starting date of the period for approval or rejection of a concerted action application, and the starting date after amendments to such application, are defined (Article 24).
To prevent frivolous complaints and the waste of administrative resources, the FTC need not consider complaints without specific content or without a genuine name or address of the complainant (Article 30).
