The LCD Cartel: Impacts and Implications for The Competition Policy of Taiwan

Abstract

This paper is a discussion on the impacts and implications from the LCD cartel case on the competition policy of Taiwan. We review this case before presenting an analysis of the relevant legal and economic issues. The purpose of this paper is to first demonstrate how the differences in substantive and procedural requirements for investigating cartels have led the competition enforcement agencies of Taiwan, the United States, and the European Union to arrive at different legal conclusions for the same case. Based on this observation, this paper then examines the impacts and implications this case might have on competition law and policy in Taiwan. This case accelerated the amendments to the Taiwan Fair Trade Act (“TFTA”), the competition law of Taiwan, to incorporate the leniency program into law and to facilitate cartel reporting and investigations. However, this case also revealed certain unsettling legal issues in the prosecution of international cartels. In addition, this case also provides an opportunity to re-examine the discussion related to the role market-scale differences and cultural variances play in the antitrust analysis of cartels. We offer initial thoughts on issues that might be useful for future competition policy reform in Taiwan.

Keywords: liquid crystal display, cartel, competition law, extraterritorial jurisdiction, leniency program, The Fair Trade Act, Taiwan

JEL Classification: K21, D40