December 29, 2025
TFTC Granted Conditional Approval for Joint Renewable Energy Procurement by Electronics Companies and Their Supply Chains
In February 2025, the Taiwan Fair Trade Commission (hereinafter “TFTC”) issued the Guidelines for Concerted Actions of Enterprises in Response to Environmental Sustainability, which outline the potential risks associated with green cooperation and provide a Self-Assessment Checklist for Enterprises to facilitate internal review and, if necessary, the submission of applications for exceptions to concerted actions.
[1]
In November of the same year, the TFTC granted a conditional approval for electronics companies and their supply chain partners to jointly procure renewable energy (Approval No. 114005, hereinafter “Approval”), marking Taiwan’s first case of a concerted action exception with environmental sustainability as its core focus.
The TFTC concluded that the joint procurement would enhance the bargaining parity between buyers and sellers, attract greater participation from electricity suppliers, reduce transaction costs, improve the accessibility and utilization of renewable energy, and reduce carbon emissions. These effects contribute to enhancing the sustainability value of electronic products and fostering market competition. The TFTC considered this joint procurement to constitute a concerted action necessary for promoting industrial development and operational efficiency, thereby meeting the exception criteria set out in subparagraph 8 of the proviso to Article 15(1) of the Fair Trade Act (see reasoning points 3–5 of the Approval).
Regarding competition impact, the TFTC noted that the joint procurement volume is limited relative to the tradable renewable energy market. Electricity and power generation providers still have multiple options, and electronics companies not participating in the joint procurement remain able to compete in terms of product price and quality. Consequently, the market continues to maintain competitiveness (see reasoning point 2 of the Approval).
Based on the foregoing assessment, the TFTC granted conditional approval for a period of five years, from December 1, 2025, to November 30, 2030, subject to the following conditions: applicants shall not share or disclose sensitive procurement or operational information; applicants shall not use this approval to engage in other concerted actions; no individual participant may be refused exit without justifiable reason; any changes to the participating entities must be reported to the TFTC; the approval shall not be used to limit the procurement volume of individual participants or to prohibit their independent procurement; and applicants must regularly report the implementation status of the joint action and submit related documents, including electricity procurement agreements, to the TFTC (see approval conditions of the Approval).
This case has landmark significance in Taiwan’s competition law practice. Although the proviso to Article 15(1) of the Fair Trade Act expressly enumerates multiple grounds on which an exemption application may be sought—covering concerted actions aimed at reducing costs, improving quality, enhancing efficiency, conducting joint research and development, engaging in professional specialization, coordinating foreign trade, or otherwise being necessary to promote industrial development or operational efficiency—in practice, cases in which the TFTC has actually granted approval for concerted actions have been extremely limited. Historically, such approvals have been largely confined to specific industry models, such as joint shipping arrangements for the importation of bulk commodities, coordinated scheduling or joint ticketing by shipping operators, and certain credit card business arrangements. By contrast, the present case, involving the joint procurement of renewable energy by electronics industry players and their supply chain partners, represents the first instance in which the TFTC, following its increased focus on environmental sustainability, has relied on subparagraph 8 of the proviso to Article 15(1) as the legal basis for granting an exemption, thereby expressly affirming the legitimacy of concerted actions centered on sustainability objectives. This decision carries strong precedential value: going forward, enterprises engaging in green cooperation, circular economy initiatives, or supply chain decarbonization that involve collaboration among competitors and raise potential competition law concerns may proactively make use of the TFTC’s “Guidelines for Concerted Actions of Enterprises in Response to Environmental Sustainability,” conduct self-assessments, and, where appropriate, seek prior approval in order to advance sustainability goals while remaining compliant with competition law.
[1] For an introduction to the Guidelines for Concerted Actions of Enterprises in Response to Environmental Sustainability, please refer to our article: TFTC Issues Guidelines on Concerted Action for Environmental Sustainability, Highlighting Potential Risks of Green Cooperation.
The TFTC concluded that the joint procurement would enhance the bargaining parity between buyers and sellers, attract greater participation from electricity suppliers, reduce transaction costs, improve the accessibility and utilization of renewable energy, and reduce carbon emissions. These effects contribute to enhancing the sustainability value of electronic products and fostering market competition. The TFTC considered this joint procurement to constitute a concerted action necessary for promoting industrial development and operational efficiency, thereby meeting the exception criteria set out in subparagraph 8 of the proviso to Article 15(1) of the Fair Trade Act (see reasoning points 3–5 of the Approval).
Regarding competition impact, the TFTC noted that the joint procurement volume is limited relative to the tradable renewable energy market. Electricity and power generation providers still have multiple options, and electronics companies not participating in the joint procurement remain able to compete in terms of product price and quality. Consequently, the market continues to maintain competitiveness (see reasoning point 2 of the Approval).
Based on the foregoing assessment, the TFTC granted conditional approval for a period of five years, from December 1, 2025, to November 30, 2030, subject to the following conditions: applicants shall not share or disclose sensitive procurement or operational information; applicants shall not use this approval to engage in other concerted actions; no individual participant may be refused exit without justifiable reason; any changes to the participating entities must be reported to the TFTC; the approval shall not be used to limit the procurement volume of individual participants or to prohibit their independent procurement; and applicants must regularly report the implementation status of the joint action and submit related documents, including electricity procurement agreements, to the TFTC (see approval conditions of the Approval).
This case has landmark significance in Taiwan’s competition law practice. Although the proviso to Article 15(1) of the Fair Trade Act expressly enumerates multiple grounds on which an exemption application may be sought—covering concerted actions aimed at reducing costs, improving quality, enhancing efficiency, conducting joint research and development, engaging in professional specialization, coordinating foreign trade, or otherwise being necessary to promote industrial development or operational efficiency—in practice, cases in which the TFTC has actually granted approval for concerted actions have been extremely limited. Historically, such approvals have been largely confined to specific industry models, such as joint shipping arrangements for the importation of bulk commodities, coordinated scheduling or joint ticketing by shipping operators, and certain credit card business arrangements. By contrast, the present case, involving the joint procurement of renewable energy by electronics industry players and their supply chain partners, represents the first instance in which the TFTC, following its increased focus on environmental sustainability, has relied on subparagraph 8 of the proviso to Article 15(1) as the legal basis for granting an exemption, thereby expressly affirming the legitimacy of concerted actions centered on sustainability objectives. This decision carries strong precedential value: going forward, enterprises engaging in green cooperation, circular economy initiatives, or supply chain decarbonization that involve collaboration among competitors and raise potential competition law concerns may proactively make use of the TFTC’s “Guidelines for Concerted Actions of Enterprises in Response to Environmental Sustainability,” conduct self-assessments, and, where appropriate, seek prior approval in order to advance sustainability goals while remaining compliant with competition law.
[1] For an introduction to the Guidelines for Concerted Actions of Enterprises in Response to Environmental Sustainability, please refer to our article: TFTC Issues Guidelines on Concerted Action for Environmental Sustainability, Highlighting Potential Risks of Green Cooperation.
