Taiwan
Established RegimeFair Trade Act
Authority: Taiwan Fair Trade Commission (TFTC) | Enforcement: Active | Enacted: February 1992
Overview
Taiwan was one of the earliest competition law adopters in Asia, with the Fair Trade Act enacted in 1991 and the TFTC established in 1992. The Act covers anti-competitive agreements, abuse of dominant position, merger control, and unfair trade practices. The TFTC is an active enforcer, particularly in technology, electronics, and consumer goods sectors. The Act has been amended multiple times, most notably in 2015 to strengthen penalties and refine merger thresholds. Taiwan participates actively in international competition policy fora and maintains a well-developed leniency programme.
14-Topic Competition Coverage
Competition Authority
Fully AddressedThe Taiwan Fair Trade Commission is an independent agency with investigation, adjudication, and penalty-imposing powers across all sectors.
Anti-Competitive Agreements (Horizontal)
Fully AddressedConcerted actions (horizontal agreements) restricting competition are prohibited. Exemptions may be granted by the TFTC if the conduct benefits the economy or public interest.
Anti-Competitive Agreements (Vertical)
Fully AddressedVertical restraints, including resale price maintenance, are prohibited as unfair competitive practices. The TFTC assesses vertical agreements under a rule-of-reason approach.
Abuse of Dominance
Fully AddressedEnterprises with monopolistic status are prohibited from engaging in abusive conduct such as predatory pricing, refusal to deal, or discriminatory treatment.
Merger Control
Fully AddressedPre-merger notification required where turnover or market share thresholds are met. The TFTC has 30 days (extendable to 60) to review. Failing to file carries penalties.
Leniency Programme
Fully AddressedThe TFTC operates a leniency programme granting immunity or reduced fines for the first applicant reporting a cartel. Subsequent applicants may receive reductions.
Settlement & Commitment
Partially AddressedThe TFTC may accept administrative undertakings or consent agreements. Formal settlement mechanisms are less developed than in some jurisdictions.
Penalties & Sanctions
Fully AddressedAdministrative fines of up to TWD 50 million for concerted actions (TWD 100 million for repeat offences). Criminal sanctions apply for serious cartel conduct, including imprisonment of up to 3 years.
Digital Markets Regulation
Partially AddressedNo specific digital markets legislation. The TFTC has applied the Fair Trade Act to digital platforms and has investigated major technology firms.
Sector Regulators
Fully AddressedThe NCC (telecommunications), Financial Supervisory Commission, and other sector regulators cooperate with the TFTC on competition matters in their respective sectors.
Dawn Raids & Investigations
Fully AddressedThe TFTC has powers to conduct on-site inspections, summon witnesses, and require document production. It may refer cases for prosecutorial investigation.
Private Enforcement
Fully AddressedInjured parties may bring civil actions for damages, including treble damages, for violations of the Fair Trade Act.
International Cooperation
Fully AddressedThe TFTC engages in bilateral cooperation with competition authorities in the US, Japan, and other jurisdictions through MOUs and the ICN.
Recent Enforcement Trends
Fully AddressedRecent focus on technology sector (Qualcomm fine of TWD 23.4 billion in 2017), bid-rigging in public procurement, and digital platform practices.
Coverage Summary
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