The Legislative Yuan adopted during the 19th Meeting of the 6th Session of the 8th Term on January 22, 2015 the Fair Trade Law as amended (hereinafter, the "Law"), which was promulgated by the President on February 4, 2015. With the exception of Articles 10 and 11, which will go into effect 30 days upon promulgation, the Law came into effect on the date of its promulgation with amendments highlighted as follows:

  1. Articles 10 and 11 pertain to the modification of the calculation basis for a merger:

Article 10, Paragraph 2 of the Law as amended provides that in case of a merger between enterprises where the shares or capital contribution held or acquired by an enterprise from the other enterprise as calculated exceeds one third of the total voting shares or total capital of such other enterprise, the shares or capital contribution held or acquired by the enterprises having controlling or affiliation relations with the merging enterprise and by affiliated enterprises under common control of the same enterprise(s) shall also be included in the calculation. Under Article 11, Paragraph 3 of the Law as amended, the sales amount of enterprises participating in a merger in the previous accounting year shall be reported if it exceeds an amount announced by the competent authority, and the sales amounts of enterprises having controlling or affiliation relations, or of affiliated enterprises under common control of the same enterprise(s) with, the enterprises participating in the merger shall be included in the calculation. The calculation method shall be announced by the competent authority.

  1. Definition and presumed agreement under Article 14, Paragraphs 1 and 3

Under Article 14, Paragraph 1 of the Law as amended, a concerted action is an action taken by enterprises with competitive relations at the same production and distribution stages to jointly decide the prices, quantities, technologies, products, equipment, trading counterparts and trading areas of goods or services or other acts that mutually restrict enterprise activities by way of contract, agreement or other forms of agreement to an extent sufficient to affect market functions such as production, trading of goods or service provision. The agreement on such concerted action in this paragraph may be presumed based on appropriate factors such as market conditions, characteristics of goods or services, cost and profitability considerations, and economic rationality of enterprise behavior.

  1. Additional general provisions regarding exceptional approval of concerted action in Article 15, Paragraph 1, Subparagraph 8

Under Article 15, Paragraph 1, Subparagraph 8 of the Law as amended, concerted action may be conducted with the approval of the competent authority if "such joint action is required to promote industry development, technical innovation or management efficiency."

  1. Additional provisions stipulating that the competent authority may stop its investigation if an enterprise concerned promises to rectify in Article 28, Paragraph 1

Under Article 28, Paragraph 1 of the Law as amended, when the competent authority investigates an act conducted by an enterprise in alleged violation of the Law, if the enterprise promises to take concrete action to desist and rectify the violations within the period specified by the competent authority, the investigation may be terminated.

  1. Increased penalties under Article 40, Paragraphs 1 and 2

The penalties for illegal acts that undermine market competition such as monopoly, concerted action, abuse of market position or restriction on resale prices are doubled. Under Article 40, Paragraphs 1 and 2 of the Law as amended, the first offender may be subject to a fine of NT$100,000 to NT$50,000,000. In case of failure to rectify, a fine of NT$200,000 to NT$100,000,000 may be imposed for each instance. For any act of monopoly, concerted action or restriction on resale prices, a fine equivalent up to 10% of the sales revenue for the previous year may be imposed, and the NT$100,000,000 cap does not apply.