26 - Taiwan

Summary

Relevant legislation and statutory standards

The Fair Trade Law of 1991 (FTL) and the Enforcement Rules to the FTL are the principal pieces of legislation concerning mergers and acquisitions, unfair competition and monopolies in Taiwan. The FTL and the Enforcement Rules were last amended in February 2002 and June 2002, respectively. The Guidelines for the Handling of Combination Filings were first promulgated in July 2006 (the “Guidelines”). Article 6 of the FTL places mergers and acquisitions in the broader category of “combinations of enterprises”. The amendments to the FTL and its related Enforcement Rules have changed the filing process for combinations from an approval system to a notification system.

Decision-making bodies and enforcement authorities

At the national level, the Fair Trade Commission (FTC) is the government authority regulating mergers and other types of combinations under the FTL. The FTC is empowered to examine and investigate possible violations of the FTL and to take action against violators by imposing fines and other penalties. The FTC is also empowered to order the dissolution of any combinations that violate the provisions of the FTL. The FTC will investigate complaints against combinations that are effected without the consent of the FTC, but may also investigate matters on its own initiative.

Notification requirements and procedures

Combinations subject to notification in Taiwan

Transactions that fall under the broad category of “enterprise combinations” under Article 6 of the FTL and meet one of the jurisdictional thresholds set forth below must be notified to the FTC in advance.