Under Article 14 of Taiwan’s Fair Trade Act, a “concerted action” refers to an agreement among competing enterprises to jointly determine the price of goods or services or other matters sufficient to affect market functions, thereby mutually restraining their business activities. As a general rule,
Under Article 14 of Taiwan’s Fair Trade Act, a “concerted action” refers to an agreement among competing enterprises to jointly determine the price of goods or services or other matters sufficient to affect market functions, thereby mutually restraining their business activities. As a general rule, concerted actions are prohibited. However, where such conduct is necessary to promote industrial development or operational efficiency, and where the competent authority determines upon review that it is beneficial to the overall economy and public interest, an exception may be granted. This regulatory framework is designed to balance the maintenance of fair competition with the needs for economic development, preventing undue restrictions on competition while encouraging cooperation that serves the public interest.
Recently, the Fair Trade Commission (FTC) issued a decision1 granting approval for a joint procurement arrangement involving multiple enterprises in the electronics industry supply chain for the purchase of renewable energy electricity. Under the proposed arrangement, the applicants plan to aggregate demands for approximately 170 million kWh of renewable energy annually and, with the assistance of a consulting firm, negotiate prices and enter into power procurement agreements separately with electricity retailers. The FTC concluded that the scale of the joint procurement does not account for a significant proportion of the tradable volume in the renewable energy market and therefore does not give rise to concerns regarding the abuse of buyer power. Moreover, the arrangement is expected to enhance the sustainability of electronic products, promote market competition, increase the accessibility and utilization of renewable energy, reduce carbon emissions, and drive the development of green supply chains and low-carbon transformation. Accordingly, the FTC found that the arrangement satisfies the statutory requirements for an exception, namely promoting industrial development, improving operational efficiency, and benefiting the overall economy and the public interest.
In light of the planned transition of the corporate governance evaluation into an ESG evaluation in 20262 , with environmental (E) indicators E-1 to E-3 addressing greenhouse gas emissions, E-8 to E-9 addressing energy management, and E-11 to E-12 addressing climate change impacts, etc., this approval decision is also aligned with Taiwan’s energy transition policies and the direction of sustainable industrial development. The subsequent implementation of this arrangement and its impact on the renewable energy market merit continued observation.
1 Fair Trade Commission Concerted Action Approval Decision (Gong Lian Zi No. 114005): https://www.ftc.gov.tw/uploadDecision/7b077698-8a72-4eff-a35f-a65e96b99edd.pdf
2 Corporate Governance Center: https://cgc.twse.com.tw/frontEN/index
