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SKILLS OF INVESTIGATION ABOUT CARTEL AND
EXPLANATION OF CASE

• Fair Trade Commission, Taiwan Presented
• CHIANG KUO-LUN
• at Saba, Vietnam
• May19 May20, 2006

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The Features of Cartel (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

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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

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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,examplejointed price,restrict
  products.quantities. technology

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Review for conduct of Cartel(1)

• Form contract,combination,conspiracy ,etc.in
  order to complete their agreement
• Contractan oral or a written contract
• Combinationcombined with the parties
• Conspiracymake a coalition

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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

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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 .

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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.
• exampleaccount books,conventional record
• and take the indirect evidence to interpret it.

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Investigate about conduct of Cartel(2)

• Skills of investigation have divided two
  methodgeneral method and specifically method of
  investigation.
• general methodin a normal constitution can
  process the procedure
• specific methodwhen anybody is so difficult as
  to complete ,may be do it.

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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

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Explanation of case1 for Cartel(1)

• CaseAgriculture concerted action
• 1.Backgroundeggs 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.

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Explanation of case1 for Cartel(2)

• CaseAgriculture 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

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Explanation of case1 for Cartel(3)

• CaseAgriculture concerted action
• 3.Process investigationnotify 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

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Explanation of case1 for Cartel(4)

• CaseAgriculture concerted action
• 4.Resources of investigationinvestigate 8
  months,
• Notify the relevant bureau and the principle
  parties and interested persons is accumulated 5
  time

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Explanation of case1 for Cartel(5)

• CaseAgriculture concerted action
• 5.investigation resultseggs 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.

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Explanation of case1 for Cartel(6)

• CaseAgriculture concerted action
• 6.collusion analysisa 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.

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Explanation of case2 for Cartel(1)

• CaseAirline industry concerted action
• 1.BackgroundFar 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.

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Explanation of case2 for Cartel(2)

• CaseFly industry concerted action
• 2. Punish and fine2 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 .

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Explanation of case2 for Cartel(3)

• CaseFly industry concerted action
• 3.Process investigationsend 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 ..

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Explanation of case2 for Cartel(4)

• CaseFly 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

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Explanation of case2 for Cartel(5)

• CaseFly 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 .

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Explanation of case2 for Cartel(6)

• CaseFly 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.

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• Thank you