To address the competition issues arising from the emergence of novel business models in the digital economy and the rise of technology giants, the Digital Economy Competition Policy Task Force at the Taiwan Fair Trade Commission (the "TFTC") started to draft the White Paper on Competition Policy in the Digital Economy in 2021, and, following much efforts and several rounds of Task Force meetings and Commissioners' meetings, the TFTC finally released the draft White Paper on March 2, 2022.

The competition issues explored in the White Paper include: 1) challenges in adapting conventional approaches to defining relevant markets and assessing market power in the digital economy; 2) platform operators' business practices, for example, self-preferencing, tying, predatory pricing/ illegal inducement with low prices, price discrimination, Most-Favored-Nation Clause, resale price maintenance and restrictions on online sales; 3) the interface between data privacy and market competition, news media bargaining conduct, killer acquisitions, and false and misleading online advertising; 4) the legality of algorism-facilitated collusion under the Taiwan Fair Trade Act. In the draft White Paper, the TFTC looks into other competition authorities' enforcement activities and decisions in other jurisdictions, as well as the TFTC's past experience in reviewing relevant cases, and lay out its enforcement position and future direction on the above-mentioned competition concerns.

The White Paper is the TFTC's first comprehensive overview of competition issues specific to the digital economy along with its relevant enforcement position and policy direction. The TFTC has made the draft White Paper available for download on its website and is inviting comments and feedback from the public. In addition, the TFTC also plans to invite academics, industry experts and relevant regulatory agencies to share their views and insights on the draft White Paper, and will take the opinions of various stakeholders into consideration when revising the draft. The final version of the White Paper will then be submitted to the Commissioners' meeting for approval before making it available to the public.

The TFTC stated that its goal of producing the White Paper on Competition Policy in the Digital Economy is to provide transparent and clear guidance for enterprises, enabling them to continue to innovate and enhance overall social welfare without distorting or hindering competition.

If you have any questions about the draft White Paper or would like to learn more about the relevant issue, please do not hesitate to contact us.