February 2025
TFTC Issues Guidelines on Concerted Action for Environmental Sustainability, Highlighting Potential Risks of Green Cooperation
On February 12, 2025, the Taiwan Fair Trade Commission (“TFTC”) issued the Guidelines on Concerted Action for Environmental Sustainability (“Guidelines”), aimed at helping businesses align with sustainability goals while complying with the Fair Trade Act (“FTA”). The Guidelines clarify the definition and elements of concerted action and provide illustrative scenarios to assist businesses in assessing compliance risks. The three scenarios include:
1. Scenarios with No Concerted Action Concerns
Businesses engaging in information sharing related to sustainability, jointly advocating environmental initiatives, conducting sustainability-related research, or issuing public statements in support of government policies generally do not raise concerns under the FTA.
2. Scenarios Likely to Constitute Concerted Action, Requiring Exemption Approval
Collaborations involving joint procurement of equipment or raw materials, standardization of product or component specifications, or joint research and development of innovative technologies may constitute concerted action. To mitigate legal risks, businesses should apply for exemption approval under the FTA.
3. Scenarios Likely to Constitute Illegal Concerted Action
Arrangements that involve price-fixing, market allocation, output restriction, collective decision-making on procurement or sales strategies, or exclusionary conduct against market entrants are highly likely to be deemed unlawful concerted action.
As industries worldwide shift toward environmental sustainability, corporate collaboration will play a key role in advancing the green economy. However, the FTC maintains stringent regulations on concerted action to ensure fair competition. Businesses should carefully evaluate whether their sustainability initiatives impose competitive restraints to avoid legal violations.
To facilitate compliance, the FTC has introduced a self-assessment checklist, enabling businesses to internally review their sustainability collaborations. Where necessary, companies should seek exemption approval to ensure that their green initiatives align with fair competition principles.
1. Scenarios with No Concerted Action Concerns
Businesses engaging in information sharing related to sustainability, jointly advocating environmental initiatives, conducting sustainability-related research, or issuing public statements in support of government policies generally do not raise concerns under the FTA.
2. Scenarios Likely to Constitute Concerted Action, Requiring Exemption Approval
Collaborations involving joint procurement of equipment or raw materials, standardization of product or component specifications, or joint research and development of innovative technologies may constitute concerted action. To mitigate legal risks, businesses should apply for exemption approval under the FTA.
3. Scenarios Likely to Constitute Illegal Concerted Action
Arrangements that involve price-fixing, market allocation, output restriction, collective decision-making on procurement or sales strategies, or exclusionary conduct against market entrants are highly likely to be deemed unlawful concerted action.
As industries worldwide shift toward environmental sustainability, corporate collaboration will play a key role in advancing the green economy. However, the FTC maintains stringent regulations on concerted action to ensure fair competition. Businesses should carefully evaluate whether their sustainability initiatives impose competitive restraints to avoid legal violations.
To facilitate compliance, the FTC has introduced a self-assessment checklist, enabling businesses to internally review their sustainability collaborations. Where necessary, companies should seek exemption approval to ensure that their green initiatives align with fair competition principles.
