Newsletter
Taiwan Fair Trade Commission Amends Regulations on Merger Filing and Monopoly Thresholds
The Taiwan Fair Trade Commission (TFTC) passed amendments to the Thresholds and Calculation of Sales Amount which Enterprises of a Merger shall File with the Fair Trade Commission at its 1787th Commissioners’ Meeting on January 21, 2026. The amendments raise the sales amount threshold for merger filings to accommodate economic growth and market scale changes in Taiwan, reduce the filing burden on businesses, and loosen regulatory restrictions. Additionally, on the same day, the TFTC resolved to raise the Threshold of Total Sales at Which an Enterprise is Exempted from being Deemed as a Monopolistic Enterprise from the current NT$2 billion to NT$3 billion.
Key points of the amendments are as follows:
I. Amendments to the Thresholds and Calculation of Sales Amount which Enterprises of a Merger shall File with the Fair Trade Commission
The TFTC explains that business mergers facilitate resource integration and enhance competitiveness. However, to prevent excessive market concentration or obstruction on free and fair competition, thereby affecting market order and consumer rights, business mergers are subject to statutory filing and review. To balance economic development and market competition, the TFTC has proposed these amendments after considering factors such as GDP growth trends, maintaining regulatory rigor, and enhancing administrative efficiency. By raising the merger filing thresholds and updating regulatory requirements, the amendments aim to reduce unnecessary administrative burdens on businesses while ensuring the regulations align with practical realities.
The key focus of the amendments is raising the sales thresholds for merger filings. A merger must be reported to the TFTC if any of the following conditions applies:
(I) The aggregate global sales of all participating enterprises in the preceding fiscal year exceed NT$50 billion (previously NT$40 billion), and at least two participating enterprises each had Taiwan sales of over NT$3 billion (previously NT$2 billion) in the preceding fiscal year.
(II) Where the participating enterprises are non-financial institutions: a participating enterprise had Taiwan sales of over NT$20 billion (previously NT$15 billion) in the preceding fiscal year, and the enterprise merging with it had Taiwan sales of over NT$3 billion (previously NT$2 billion) in the preceding fiscal year.
(III)Where the participating enterprises are financial institutions: a participating enterprise had Taiwan sales of over NT$40 billion (previously NT$30 billion) in the preceding fiscal year, and the enterprise merging with it had Taiwan sales of over NT$3 billion (previously NT$2 billion) in the preceding fiscal year.
Additionally, to align with the Financial Supervisory Commission’s amendment to the “Regulations Governing the Preparation of Financial Reports by Insurance Enterprises,” the basis for determining the sales of an insurance enterprise has been adjusted from the original “total operating revenue” to “the sum of insurance income, net investment gains or losses, asset management service income, and other operating revenue,” to ensure alignment between regulatory requirements and industry practice.
II. Amendment to the Threshold of Total Sales at Which an Enterprise is Exempted from being Deemed as a Monopolistic Enterprise
The TFTC has raised the Threshold of Total Sales at Which an Enterprise is Exempted from being Deemed as a Monopolistic Enterprise from the current NT$2 billion to NT$3 billion. Such amount is determined based on the enterprise’s total sales in the preceding fiscal year. Enterprises not reaching this threshold are generally not deemed a monopolistic enterprise.
The TFTC explains that when the Taiwan Fair Trade Act was amended in 2015, the competent authority was authorized to adjust the Threshold of Total Sales at Which an Enterprise is Exempted from being Deemed as a Monopolistic Enterprise in response to changes in economic development. Given that over ten years have passed since such total sales threshold was announced, the TFTC, after considering the changes in economic development during this period, including Taiwan’s economic growth and sales figures of various businesses, adjusted the threshold to NT$3 billion.
The amendments to the Thresholds and Calculation of Sales Amount which Enterprises of a Merger shall File with the Fair Trade Commission and the Threshold of Total Sales at Which an Enterprise is Exempted from being Deemed as a Monopolistic Enterprise take effect on the date of their promulgation.
Lee and Li’s Competition and Antitrust practice group has extensive experience in advising clients on competition and antitrust matters. Should you have any questions or require consultation regarding the above amendments, please do not hesitate to contact our team of experts.