1. SKILLS OF INVESTIGATION ABOUT CARTEL AND EXPLANATION OF CASE SKILLS OF INVESTIGATION ABOUT CARTEL AND EXPLANATION OF CASE Fair Trade Commission, Taiwan Presented CHIANG KUO-LUN at Saba, Vietnam May19 ~ May20, 2006

2. The Features of Cartel (1) A kind of H orizontal 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

3. The Features of Cartel (2) The part of enterprise at stated periods concerted action affect products,the prices of goods or services A kind of coalition enterprises

4. 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

5. 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

6. 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

7. Review for conduct of Cartel(3) 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.

8. 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.

9. 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.

10. 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

11. 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

12. General investigation for Cartel(2) 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.

13. General investigation for Cartel(3) 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.

14. General investigation for Cartel(4) 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.

15. Specific investigation for Cartel(1) 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.

16. Specific investigation for Cartel(2) 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.

17. Specific investigation for Cartel(3) 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.

18. Specific investigation for Cartel (4) 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

19. Specific investigation for Cartel (5) 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

20. Explanation of case1 for Cartel (1) 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.

21. Explanation of case1 for Cartel (2) 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

22. Explanation of case1 for Cartel (3) 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

23. 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

24. 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.

25. 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.

26. 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.

27. 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.

28. Explanation of case2 for Cartel (3) 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..

29. Explanation of case2 for Cartel (4) 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

30. Explanation of case2 for Cartel (5) 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.

31. 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.

32. Thank you