Taiwan: FTC’s record energy fines zapped on appeal

Taiwanese authorities who issued a record-setting fine of about $200 million against several energy companies for anticompetitive conduct were dealt a blow this week when the Taipei High Administrative Court struck down the sanctions in favor of the electric firms.

Nine independent power companies were hit with a record fine of about $200 million by the FTC after regulators found they formed a cartel to collectively refuse a renegotiation of power purchase agreements with state-run Taiwan Power Company.

According to reports, the Taipai High Administrative Court sided with the companies on their appeal on grounds that the companies formed their contracts with Taipower by a joint party, meaning the contracts were not subject to free market supply-and-demand factors. Further, the court found, the FTC was incorrect to determine that the nine companies collectively held 19 percent of the Taiwan energy market.

According to reports, the nine companies and competition authorities have quarreled for several years, beginning in 2006 with disputes over natural gas price hikes.

Reports did not indicate whether the appeals court reversed the FTC’s fines, though the regulator vowed to appeal the ruling.

Full content: China Post

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