The Fair Trade Commission (“FTC”) fined Formosa Plastics Corporation (“FPC”) and Formosa Chemicals & Fibre Corporation (“FCFC”) on July 31, 2013 on the ground that the companies had abused monopolistic enterprise’s market power in the sales of mirabilite and caustic soda. The FTC ruled that FPC and FCFC constituted monopolistic enterprises since they had over 50% of the market share of the market for mirabilite and caustic soda in 2011. According to FTC, FPC and FCFC, while continuing to supply mirabilite and caustic soda to other companies, refused to supply mirabilite and caustic soda to He Yi Shi Ye Ltd (“He Yi”) for the purpose of causing damage to He Yi, substantially increasing the likelihood of excluding He Yi from the sales market of industrial chemicals such as mirabilite and caustic soda. The FTC thus found FPC and FCFC to have violated the prohibition of abuse of market power by monopolistic enterprise stipulated in Subparagraph 4, Article 10 of the Fair Trade Act.
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