skills of investigation about cartel and explanation of case skills of investigation about cartel...

SKILLS OF SKILLS OF INVESTIGATION ABOUT INVESTIGATION ABOUT

CARTEL AND CARTEL AND EXPLANATION OF CASEEXPLANATION OF CASE

Fair Trade Commission, Taiwan Fair Trade Commission, Taiwan Presented Presented

CHIANG KUO-LUNCHIANG KUO-LUN

at Saba, Vietnamat Saba, Vietnam

May19 ~ May20, 2006May19 ~ May20, 2006

The Features of The Features of CartelCartel (1) (1)

• 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 The Features of CartelCartel (2) (2)

• 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 The Features of CartelCartel (3) (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)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)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)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 .

Investigate about conduct of Investigate about conduct of Cartel(1)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 Investigate about conduct of Cartel(2)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 Investigate about conduct of Cartel(3)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 forGeneral investigation for Cartel(1)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 forGeneral investigation for Cartel(2)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.

General investigation forGeneral investigation for Cartel(3Cartel(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.

General investigation forGeneral investigation for Cartel(4Cartel(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.

Specific investigation forSpecific investigation for Cartel(1Cartel(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.

Specific investigation forSpecific investigation for Cartel(2Cartel(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.

Specific investigation forSpecific investigation for Cartel(3Cartel(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.

Specific investigation forSpecific investigation for CartelCartel(4)(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

Specific investigation forSpecific investigation for CartelCartel(5)(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

Explanation of case1 for Explanation of case1 for CartelCartel(1)(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.

Explanation of case1 for Explanation of case1 for CartelCartel(2)(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

Explanation of case1 for Explanation of case1 for CartelCartel(3)(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

Explanation of case1 for Explanation of case1 for CartelCartel(4)(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 Explanation of case1 for CartelCartel(5)(5)

• Case:Agriculture concerted action• 5.investigation results:eggs trade mark

et 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 Explanation of case1 for CartelCartel(6)(6)

• Case:Agriculture concerted action• 6.collusion analysis:a eggs trade asso

ciation 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 Explanation of case2 for CartelCartel(1)(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 Explanation of case2 for CartelCartel(2)(2)

• Case:Fly industry concerted action• 2. Punish and fine:2 airline industry join

tly 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 Explanation of case2 for CartelCartel(3)(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 ..

Explanation of case2 for Explanation of case2 for CartelCartel(4)(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

Explanation of case2 for Explanation of case2 for CartelCartel(5)(5)

• Case:Fly industry concerted action• 5.investigation results: :Far Eastern Air Tra

nsport 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 Explanation of case2 for CartelCartel(6)(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