Newsletter
MAJOR FTC DECISIONS
The FTC ruled that by improperly levying sur-charges on suppliers, a certain retailer violated Article 24 of the Fair Trade Law (FTL). The FTC imposed a fine of NT$4 million. This is the first time since the FTL was amended that the FTC has ruled in a case concerning surcharges. The severity of the fine imposed is both exem-plary and indicative.
The FTC ruled that Chinese Petroleum Corpora-tion (CPC) abused its monopoly position in the market for the supply of petroleum products when it delayed providing a quotation to a company under the pretext of reviewing the structure of petroleum product prices, thus pre-venting the company from entering the domestic market for aircraft refueling. The FTC held that CPC violated Article 10 of the FTL, and imposed a fine of NT$5 million. This is the second heavy penalty the FTC has set for abuse of monopoly position, following the NT$5 million fine im-posed on Taipei Gas Company in May 2000.
The FTC determined that the reduction in the number of scheduled flights between Taipei and Kaohsiung by four domestic airlines from 1 May 2000 was a concerted action in restraint of competition, in breach of the FTL. The FTC imposed a fine of NT$10 million. However, the Civil Aeronautics Administration (CAA), Min-istry of Transportation and Communications, states that the airlines were acting in cooperation with the CAA's efforts to improve air and ground safety and make services more punctual, and their service reduction plan was approved by the CAA. Therefore the FTC's decision puts the airlines in a difficult position. The airlines plan to contest the FTC's decision through the ad-ministrative remedy proceedings.