The Taiwan Fair Trade Commission fines the leading taxi automobile supplier for implementing a territorial-restriction policy through sale subsidies (Toyota)

Introduction In March 2012, the Taiwan Fair Trade Commission (TFTC) imposed a NT$3,000,000 fine on Toyota, the leading taxi automobile supplier in Taiwan, for limiting the sales of its Taiwanese dealers to the assigned "areas of responsibility" (AOR). This case infused new elements into the enforcement landscape of the Taiwan Fair Trade Act (FTA) on vertical restraints. The TFTC found that the defendant enjoyed significant "brand loyalty" over other automobile brands. Other than the market share data, it is a market phenomenon that further buttressed the TFTC's conclusion of Toyota's market power in the relevant markets. However, the defendant did not explicitly prohibit cross-AOR sales, nor were any penalties applied for non-complying distributors. The termination of sale subsidies

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  • Chung Yuan Christian University (Taiwan)

Quotation

Andy Chen, The Taiwan Fair Trade Commission fines the leading taxi automobile supplier for implementing a territorial-restriction policy through sale subsidies (Toyota), 29 March 2012, e-Competitions Bulletin Automobile, Art. N° 51000

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