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SKILLS OF INVESTIGATION ABOUT CARTEL AND EXPLANATION OF CASE

Learn about cartel characteristics, investigative methods, and case explanations presented by Chiang Kuo-Lun at Saba, Vietnam in May 2006. Explore how cartels operate and how to detect collusion in the market.

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SKILLS OF INVESTIGATION ABOUT CARTEL AND EXPLANATION OF CASE

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  1. SKILLS OF INVESTIGATION ABOUT CARTEL AND EXPLANATION OF CASE Fair Trade Commission, Taiwan Presented CHIANG KUO-LUN at Saba, Vietnam May19 ~ May20, 2006

  2. 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

  3. 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

  4. 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,example:jointed price,restrict products.quantities. technology

  5. 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

  6. 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

  7. 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 .

  8. 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. • example:account books,conventional record • and take the indirect evidence to interpret it.

  9. Investigate about conduct of 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.

  10. 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

  11. 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

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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

  19. 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

  20. Explanation of case1 for Cartel(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.

  21. Explanation of case1 for Cartel(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

  22. Explanation of case1 for Cartel(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

  23. Explanation of case1 for Cartel(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

  24. Explanation of case1 for Cartel(5) • Case:Agriculture concerted action • 5.investigation results:eggs 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.

  25. Explanation of case1 for Cartel(6) • Case:Agriculture concerted action • 6.collusion analysis:a 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.

  26. Explanation of case2 for Cartel(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.

  27. Explanation of case2 for Cartel(2) • Case:Fly industry concerted action • 2. Punish and fine:2 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 .

  28. Explanation of case2 for Cartel(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 ..

  29. Explanation of case2 for Cartel(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

  30. Explanation of case2 for Cartel(5) • Case:Fly 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 .

  31. Explanation of case2 for Cartel(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.

  32. Thank you

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