SKILLS OF
INVESTIGATION ABOUT
CARTEL AND
EXPLANATION OF CASE
Fair Trade Commission, Taiwan Presented
CHIANG KUO-LUN
at Saba, Vietnam
May19 ~ May20, 2006
The Features of Cartel (1)
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A kind of Horizontal Organization
The profession or the industry at the
same production and marketing stage is
based on the jointly purpose
Contract to restrict the competitive
behaviors of enterprises
The Features of Cartel (2)
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The part of enterprise at stated
periods concerted action
affect products,the prices of goods or
services
A kind of coalition enterprises
The Features of Cartel (3)
• The main point aim at avoiding the
activities of enterprises and enhance
economic benefits
• The industry and the profession of
horizontal cooperation in oligopoly
market
• Concerted action,example:jointed
price,restrict products.quantities.
technology
Review for conduct of Cartel(1)
• Form :contract,combination,conspiracy
,etc.in order to complete their
agreement
• Contract:an oral or a written contract
• Combination:combined with the parties
• Conspiracy:make a coalition
Review for conduct of Cartel(2)
• Look for evidence is consisted of :
• 1.two enterprises in conspiracy or
collusion between parties
• 2.enterprise a in communication of
intent
• 3.feasibility of the agreement
Review for conduct of Cartel(3)
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Enterprises are in accordance with their
conducts in oligopoly market that is not
illegal ,because of may be their
possibility of independent action
In order to prove concerted action as well
as collusion between parties,and comply
with duty of proof .
Investigate about conduct of
Cartel(1)
• To prove evidence that the agreement
is existed or not
• As regarding collusion between parties,
take the direct evidence.
• example:account books,conventional
record
• and take the indirect evidence to
interpret it.
Investigate about conduct of
Cartel(2)
• Skills of investigation have divided two
method:general method and
specifically method of investigation.
• general method:in a normal
constitution can process the procedure
• specific method:when anybody is so
difficult as to complete ,may be do it.
Investigate about conduct of
Cartel(3)
• general method of investigation:
• First, confirm anybody view by
testimony
• assume it to be true and it has a
precedent case
• Take a direct or indirect evidence in
violation of law
General investigation for
Cartel(1)
• The general process of investigation:
• 1.notify the principle parties and
interested persons to submit
information
• 2.send personal to the offices,place of
business, to conduct investigation
s,make an examination record
General investigation for
Cartel(2)
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The general process of investigation:
3.require to supply information from
the relevant bureau,apply to their
assistant.
4.notify the relevant groups or a trade
association providing to submit
information.
General investigation for
Cartel(3)
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The general process of investigation:
5.search for industry
reporters,statistical books, make oral
or paper record.
6.notify the principle parties and
interested persons to appear and
make statement,reply or contradict.
General investigation for
Cartel(4)
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The general process of investigation :
7.require to delivering from the
relevant bureau,convince of it is a
correctly information.
8.notify the principle parties make an
additional reply or pleading.
Specific investigation for
Cartel(1)
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The specific process of investigation:
1.assert the fact is true and the
fundamental data of convict.
2.search for industries reporters,
market resources,statistical books.
Specific investigation for
Cartel(2)
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The specific process of investigation:
3.notify the relevant groups or a trade
association providing to submit
information
4.require to supply information from
the relevant bureau,apply to their
assistant.
Specific investigation for
Cartel(3)
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The specific process of investigation:
5.send personal to the offices,place of
business, to conduct investigation
s,make an examination record .
6.notify the principle parties and
interested persons to submit
information.
Specific investigation for
Cartel(4)
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The specific process of investigation:
7.notify the principle parties and
interested persons to appear and
make statement,reply or contradict
8.require to delivering from the
relevant bureau,convince of it is a
correctly information
Specific investigation for
Cartel(5)
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The specific process of investigation:
9.confirm it is a correctly information
to conduct
10.necessarily,convene a meeting or
statement,or arrange for a public
hearing
Explanation of case1 for Cartel(1)
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Case:Agriculture concerted action
1.Background:eggs industries,a eggs
trade association take a participle
council resolution,in order to ask
large-carriage to make less prices of
eggs locality in the newspaper to sell
their member.
Explanation of case1 for Cartel(2)
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Case:Agriculture concerted action
2. Punish and fine :the parties belong
to a eggs trade association ,the
association jointed restrict eggs
commerce to sell-prices .
Affect supply and demand in function
of eggs market ,breach fair trade law
article 14, punished fine 20 thousand
NTD
Explanation of case1 for Cartel(3)
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Case:Agriculture concerted action
3.Process investigation:notify eggs trade
association to submit a paper.
Appear and interview large-carriage to make
less 2 dollars of eggs locality for a week
supply once 0.6kg in account standard.
Ask breeding chicken association to make
a statement
require to delivering from the relevant
bureau
present association promise and their data
Explanation of case1 for Cartel(4)
• Case:Agriculture concerted action
• 4.Resources of
investigation:investigate 8 months,
• Notify the relevant bureau and the
principle parties and interested
persons is accumulated 5 time
Explanation of case1 for Cartel(5)
• Case:Agriculture concerted action
• 5.investigation results:eggs trade
market is eggs merchant consult with
taipei large-carriage prices in the
newspaper to make less 2 dollars and
purchase to eggs farmer.
• Eggs prices in the newspaper is before
today trade constitution.
Explanation of case1 for Cartel(6)
• Case:Agriculture concerted action
• 6.collusion analysis:a eggs trade
association have 74 members.
• decide on large-carriage to make less
2 dollars of eggs locality in the
newspaper to sell their member
• affect the market function of production,
trade in goods, or supply and demand of
services.
Explanation of case2 for Cartel(1)
• Case:Airline industry concerted action
• 1.Background:Far Eastern Air
Transport and TransAsia Airways
instituted a program of unconditional
ticket voucher endorsement and
transfers on any routes.passengers
use tickets from either airline can take
the flights on the other airline.
Explanation of case2 for Cartel(2)
• Case:Fly industry concerted action
• 2. Punish and fine:2 airline industry
jointly decided how they would restrict
the endorsement and transfer of airline
tickets.
• Affect supply and demand in function
of the domestic airline market ,breach
fair trade law article 14, punished fine 2
million NTD and 1.5 million NTD .
Explanation of case2 for Cartel(3)
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Case:Fly industry concerted action
3.Process investigation:send personal to
the offices,place of airline industry .
Try to buy tickets from either airline can
take the flights on the other airline
Examine travel agency to make a statement
Notify 2 airline industry to submit a
paper,to appear and interview.
Ask consumer ,travel agency and airline
worker to make a statement.
require to delivering from the relevant
bureau and other airline industry ..
Explanation of case2 for Cartel(4)
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Case:Fly industry concerted action
4.Resources of
investigation :investigate 7 months,
Notify the relevant bureau and the
principle parties and interested
persons is accumulated 18 time
Explanation of case2 for Cartel(5)
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Case:Fly industry concerted action
5.investigation results: :Far Eastern Air
Transport and TransAsia Airways had
market 50% respectively.
It was high enough to effect supply and
demand in the domestic airline industry.
2 airline industry became more competitive
than the other airline after instituting the
unconditional ticket endorsements
program .
Explanation of case2 for Cartel(6)
• Case:Fly industry concerted action
• 6.collusion analysis: no regulatory
agreement,the other airlines will be forced to
participate in the joint operations or drive out
of the market,tend toward excessive market
concentration
• The concerted actions are no benefit to the
overall national economy and public interest.
Thank you