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12-14 F., No. 2-2 Jinan Rd., Sec. 1, Taipei, Taiwan, R.O.C. Tel 886-2-2351-7588 http://www.ftc.gov.tw GPN 2009700036 PRICE NT$30 FAIR TRADE COMMISSION, EXECUTIVE YUAN, R.O.C. (Taiwan) Creating a Quality Competition Environment in Taiwan Taiwan FTC Newsletter No.011 Taiwan FTC Newsletter Publisher: Fair Trade Commission, Executive Yuan, R.O.C. (Taiwan) Publish Date: December 2008 A Key to Enlightenment: History and Special Characteristics of the Textbook Market A Key to Enlightenment: History and Special Characteristics of the Textbook Market
Transcript
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12-14 F., No. 2-2 Jinan Rd., Sec. 1, Taipei, Taiwan, R.O.C.Tel 886-2-2351-7588http://www.ftc.gov.tw

G P N 2009700036

P R I C E N T $ 3 0

FAIR TRADE COMMISSION, EXECUTIVE YUAN, R.O.C. (Taiwan)

Creating a Quality Competition Environment in Taiwan

Taiwan FTC NewsletterNo.011

Taiwan FTC NewsletterPublisher: Fair Trade Commission, Executive Yuan, R.O.C. (Taiwan)Publish Date: December 2008

A Key to Enlightenment:History and SpecialCharacteristics of theTextbook Market

A Key to Enlightenment:History and SpecialCharacteristics of theTextbook Market

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Special TopicA Key to Enlightenment: History and Special Characteristics of the Textbook Market

Selected CasesLegitimate Teaching Tools or Gifts? What is the Borderline between the Provision of

Teaching Tools and Gifts? What is the Standard?

Textbook Providers that Give Teachers Gifts Watch out for Violation of Laws

Dear o dear, we made the test paper disappear!

FTC Statistics Statistics on Cases of Illegal Textbook Enterprises

FTC Activities FTC Activities in October 2008

FTC International Exchanges FTC International Exchanges in October 2008

Taiwan FTC NewsletterNo.0112008.12

Taiwan FTC Newsletter

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Taiwan FTC Newsletter No.011 / 2008. 12 00101

History of the Textbook Market

The history and development of the market for

textbooks in Taiwan records that the National

Institute for Compilation and Translation (NICT)

was responsible for publishing approved editions

of all textbooks used in domestic junior high and

elementary schools. In 1989 the Ministry of

Education opened up the textbook market to a li-

mited extent and allowed the private sector to edit

and review textbooks on art subjects and some

other activities of junior high and elementary

schools. At that time, the majority of textbooks, on

general subjects, were still reviewed and edited by

the NICT.

The advent of a more liberalized education system

and a worldwide trend toward utilizing a diverse

range of teaching materials provided the impetus

for change and the market in textbooks was pro-

gressively opened up. From 1996 onwards, the

Ministry of Education decided to slowly allow the

private sector to edit and review textbooks on an

increasing number of general subjects and this

gradually permitted the private sector to directly

compete with the NICT. This cautious approach to

move to an open market was justified on the basis

that the NICT wanted to maintain high standards

and protect the quality of textbooks and this was

unlikely to be achieved with rapid liberalization to

bring about a completely free market.

The Era of Warring States and theStorm of Competition

In 2002, a major change occurred to the market in

which both the private sector and the NCIT co-

existed. In September of that year, the Ministry of

Education declared that the market for junior-high

and elementary school textbooks would be opened

up in full. This move meant that the NCIT, which

originally undertook the role of compiling, conso-

lidating and publishing all textbooks, would exit

the market.

Textbook providers had eagerly anticipated the

emergence of this open market and for a long time

sensed that opportunities existed to seize a sizable

proportion of the market. A vigorous fight to seize

market share ensued with a number of enterprises

investing considerable resources in a bid to secure

a dominant position and ultimately become the

sole beneficiary of the available profits. Disputes

between competing parties arose concerning offers

of discount packages, gifts and prizes, all of which

emerged in an endless stream. Reference books,

bridging courses and teaching materials were all

offered as incentives for teachers and educators in

a bid to persuade them that their textbooks should

be at the top of the recommended reading list.

This aggressive and optimistic marketing occurred

at the time of implementation of the nine-year edu-

cation system for elementary and junior high

schools. However, an unexpected consequence

saw a backlash of public opinion against the text-

book industry. Extreme dissatisfaction with the

industry was expressed and criticism, that stan-

dards had fallen since the deregulation of the mar-

ket, was voiced from a number of fields. This ulti-

mately led to the Ministry of Education reviewing

the situation and deciding to restore the publication

of national-edition textbooks from 2005 onwards.

These publications remain in the market today and

compete in the market with the reviewed-edition

textbooks produced by the private sector.

A Key to Enlightenment: History and Special Characteristics of theTextbook Market

Special Topic

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Taiwan FTC Newsletter No.011 / 2008. 12 02

The reintroduction of national-edition textbooks to

the market immediately demonstrated the competi-

tive advantage that can be gained through coercive

means, such as the power of official endorsement,

even though this was held in check. At the same

time, all manner of disputes concerning pricing

and dubious promotions within the industry

brought forth concerns about whether there truly

was a role for the intervention of competition law

in this market.

As taking up the official post of the Mayor of

Taipei City, at the end of December 2006, Mayor

Hau started to push his election proposal, One

outline, one version of textbooks at the begin-

ning of 2007. He sought the alliance of other coun-

ties and cities to adopt the proposal along with

Taipei City. However, such a proposal did not con-

form to the policy of the central government which

was One outline, multiple versions of

textbooks . Given the number and rate of stu-

dents from Taipei City that advance to higher

schools, and the nature of the Mayor Hau’s propos-

al, there was an immediate renewal in community

debate on the direction in which the national cur-

riculum should be developed.

Relationships between Textbooks andthe Broader Education Market

The amount of profits directly derived from the

sale of textbooks is minimal to say the least.

Before it reaches the market, a textbook must pass

an independent review and, in the minds of many,

this compilation process not only wastes time but

adds to the ultimate costs. Further, the prices of

textbooks are often governed by joint negotiations

between the county and city governments in a type

of collective bargaining arrangement and this fur-

ther limits the amount of profit available for the

provider to earn through the publishing and sale of

textbooks.

The majority of profits of a provider are derived

from selling auxiliary teaching materials such as

reference books and evaluation books that accom-

pany the sale of textbooks. Such types of auxiliary

teaching materials are not subject to any indepen-

dent review and they do not need to go through

price negotiations. The amount of manpower and

financial resources spent on compiling such auxil-

iary teaching materials is far less than that spent on

compiling textbooks. These contributing factors

are the reason why the production and the sales of

auxiliary teaching materials comes at a lower cost

and therefore provides sustainable profits, but only

if the market share of textbooks is high and the

sales volume is sufficiently large. The sales results

for auxiliary teaching materials are analogous to

the boat rising when the river swells. The smart

textbook provider will carve out a niche at this end

of the market.

At a statistical level, the output value of the private

sector for publishing textbooks is presently in the

vicinity of NT$ 3.4 billion and the value of output

in the peripheral market for reference books and

teaching tools reaches nearly NT$ 4.1 billion. This

data allows one to peek at the alluring part of the

textbook market. At the same time, it explains the

reasons underlying the linking of sales of reference

books with textbooks and why providers continue

to pursue market share through all kinds of aggres-

sive marketing strategies.

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Taiwan FTC Newsletter No.011 / 2008. 12 00303

In the Eyes of Competit ion Law:Contradiction and Confl icts in theCurrent Market

After several years of vigorous competition,

domestic textbook providers went through a num-

ber of mergers and acquisitions with the result that

stronger providers began to dominate the market.

The present market now displays characteristics

similar to that of a monopoly or oligopoly. In other

words, a minority of textbook providers has a high

level of market power that enjoys a considerable

degree of dominant position in transaction process-

es, e.g. price negotiations for the sale of textbooks.

Unfortunately this position results in an under-per-

formance of the market competition mechanism.

Even though these providers enjoy oligopolistic

positions in the market, in their continued endea-

vor to achieve a greater market share, they persist

in conducting many acts that result in competition

restraint or engage in unfair competition either by

participating in concerted actions or employing

promotional marketing through the use of impro-

per gifts. Paradoxically, the market displays a

seemingly under-performance of competition on

the one hand and overly aggressive marketing

behavior on the other. The simultaneous appear-

ance of these two opposing sides complicates con-

siderably the analysis and application of competi-

tion regulation in the textbook market.

Relationships between SpecialCharacteristics of the Textbook Industryand Competition Law

The nature of textbooks is obviously different from

that of other products because their publication is

inextricably tied to the execution of education poli-

cy. The market also has the peculiar characteristic

that there exists a separation between persons

selecting textbooks (schools and/or teachers) and

those that pay for textbooks (students or parents).

In this context, the FTC has, since its establish-

ment, faced unprecedented challenges in determin-

ing when competition principles should be applied

and what level of enforcement is appropriate.

To this end, the FTC intends to continue to dis-

courage and control acts of improperly restraining

competition and acts of unfair competition by

enterprises operating in this oligopolistic market.

Each year, the FTC undertakes a comprehensive

evaluation of relevant market forces operating in

the textbook industry to understand the context in

which competition law should apply. This

involves:

collecting the latest available information about

the industry every year;

undertaking questionnaires with relevant indus-

try members;

voluntarily conducting research;

commissioning scholars to conduct research;

promulgating educational materials and raising

awareness of the fair trade laws; and

holding workshops for government officials and

scholars to interact with the industry.

Such activities are undertaken to gain a better

understanding of the textbook industry and its spe-

cial characteristics to ensure obligations under fair

trading laws are being met and that the law is

appropriately enforced having regard to all rele-

vant circumstances from a competition law per-

spective.

Special Topic

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Taiwan FTC Newsletter No.011 / 2008. 12 04

Legitimate Teaching Tools or Gifts? What is the Borderline between theProvision of Teaching Tools and Gifts? What is the Standard?

A large cross section of society has carefully mon-

itored the textbook publication market ever since

the Ministry of Education relinquished control and

brought about its liberalization. No doubt, such a

reaction stems from the desire to maintain educa-

tion standards and text books are instrumental in

achieving these aims. Beyond these worthy aspira-

tions there are also those with commercial interests

to pursue. In order to capture a greater market

share of the industry, textbook providers have

developed all kinds of marketing strategies.

Among these strategies, was the use of incentives

and inducements to persuade schools or teachers to

favor one particular text book over another. The

legality of such a strategy is contentious, especial-

ly where the inducements involved the provision

of goods or services unrelated to the subject matter

of the textbooks themselves.

On closer examination, the FTC considered that

many improper marketing practices in the textbook

industry had obviously affected the selection of

textbooks by junior high schools and elementary

schools across the nation. It not only distorted the

perception of maintaining high educational stan-

dards, it also caused unfair competition to other

enterprises that had not adopted similar marketing

strategies. Consequently, the FTC established mar-

keting guidelines for industry entitled Fair Trade

Commission Policy Statements on the Distribution

of Elementary School Textbook. This guideline

provides detailed illustrations that demonstrate the

type of conduct that places textbook sellers at risk

of contravening relevant Fair Trade provisions. Of

particular concern is the employment of a market-

ing strategy that involves textbook sellers seeking

to increase their sales by giving away an improper

sum of money, articles, goods or other economic

benefits.

Explanations of Improper Money, Itemsor other Economic Benefits

The FTC provides the following examples with

respect to the so-called improper money, items

or other economic benefits :

1. Money:i. Money or gift certificates.

ii. Money in the form of supplying seminars,

workshops, facilities, office supplies, or in

other names.

iii. Transportation fees or lodging fees for visit-

ing the sales enterprise.

iv. Travel expenses or allowances for participa-

tion in seminars, workshops, or other activi-

ties.

v. Money in the form of textbook discounts or

refund handling fees.

vi. Excessive remuneration for editing work (i.e.

remuneration in the form of review fees,

opinion fees, editing participation fees, infor-

mation gathering fees or other editing/writing

fees) where the true purpose for the remune-

ration is to secure textbook sales opportuni-

ties.

vii. Money to subsidize major activities of the

school (i.e. games or school anniversary ce-

lebrations).

viii. Other improperly provided monies.

2. Items: i. Supplementary teaching aids that is irrelevant

to the utilization of the textbooks in question,

i.e. dictionaries or magazines.

ii. Facilities, i.e. teachers' chairs, clocks, or

sports equipment.

iii. Other improper provided items, i.e. cameras,

Selected Cases

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Taiwan FTC Newsletter No.011 / 2008. 12 00505

Selected Cases

televisions, VCRs, refrigerators or clothes.

3. Other economic benefits: i. Invitations to parties or social events.

ii. Invitations to plays, travel, or activities (i.e.

concerts).

iii. Provision of tour buses or lodging.

iv. Provision of parties before and after seminars

or workshops.

v. Other behavior improperly providing eco-

nomic benefit.

In preparing the guidelines for industry, the FTC

carefully considered what types of teaching aids

would place businesses at risk if these were

offered to induce textbook sales. As a general

guide, the FTC takes into consideration whether or

not the offer is genuine in the sense that the items

were not just a guise to attract sales but are in fact

legitimate teaching tools. If the inducements are

not directly linked to the teaching of a specific

textbook, then they are likely to be considered

improper items . In other words, if it is unnec-

essary to use such an item to teach a subject, it is

not an auxiliary teaching material that is directly

linked to the teaching of a specific textbook. The

textbook provider which gives such an item away

in an endeavor to increase opportunities for the

selection of its textbooks may violate the Fair

Trade Act.

Enterprises that Give Away TeachingTools Unconnected to Teaching Violatethe Law.

In a recent matter before the FTC, a textbook

provider gave a school teacher a Database Map

of Taiwan (Disc) and claimed that the item was

connected with a teaching tool used for the third

grade social studies topic My Hometown .

However, after the FTC conducted an investigation

into the matter, it discovered that the words

Satellite Navigation System were labeled in the

heading of the outer covering of the disc and under

the heading product description the following

statements were made:

[Accuracy] 4.14 million items of the

brand new map of Taiwan maps from urban

districts to alleys are accurate.

[Travel] 600,000 scenic spots for travel

and 1,500 places where speed cameras are

located.

[Navigation] The article supports a GPRS

satellite localizer and becomes a navigation

system with high speech performance.

These words and these descriptions demonstrated

that the primary purpose of the product was to pro-

vide electronic maps and support satellite naviga-

tion. Any other use was incidental and the FTC

considered that the item was not intended to pro-

vide direct assistance in teaching the subject matter

contained within the textbook. It was not a tool

that was necessary at the time of teaching.

Accordingly, it did not fall under the category,

auxiliary teaching materials that are directly linked

to the teaching of a certain textbook and the FTC

held that the provider offered this item to increase

its textbook sales and violated Article 24 of the

Fair Trade Act..

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Taiwan FTC Newsletter No.011 / 2008. 12 06

Textbook Providers that Give Teachers Gifts Watch out for Violation of Laws

From the businessman’s perspective, the main pur-

pose for operating as a publisher or distributor in

the textbook market is to maximize sales and

hence opportunities to increase profits. When a

publisher became obsessed with developing mar-

keting strategies to tempt teachers into selecting its

textbooks, it employed the tactic of giving improp-

er inducements such as sums of money, articles or

other economic benefits.

Textbook Providers that Give AwayImproper Items Watch out forViolation of Laws

During the textbook selection period of junior high

and elementary schools in 2007, a well known

textbook publisher gave teachers Mother’s Day

bags, which included items such as masks and dis-

count coupons for the ecology industry park.

These items were all for private use and were not

directly linked to the teaching of specific text-

books. The publisher denied that giving away

Mother’s Day bags to teachers was for the express

purpose of maximizing the possibility of its text-

books being selected as the preferred primary text.

However, The FTC believed that because Mother’s

Day was in May each year, and it was within the

textbook selection period of junior high and ele-

mentary schools, the publisher simply took advan-

tage of the special occasion to promote its business

interests. The promotion involved the provision of

items such as masks and discount coupons for the

ecology industry park, to persons having influence

over the selection of textbooks, i.e. teachers. In the

circumstances, it was very feasible that its conduct

was likely to affect the policy-decision process and

decisions of those teachers. Consequently, the FTC

held that the publisher’s conduct of giving away

improper items was for the express purpose of

maximizing the possibility that purchasers would

select its textbooks and this was unethical com-

mercial practice that violated Article 24 of the Fair

Trade Act. An administrative fine was imposed.

In other similar matters, textbook providers had

recently offered other inducements such as model

bicycle models that could be used for decoration,

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Taiwan FTC Newsletter No.011 / 2008. 12 00707

Selected Cases

extracurricular books, satellite navigation discs,

craft materials for decoration of classrooms, vari-

ous merit and correction stamps and CD storage

covers all of which that had no substantial bearing

on any specific subject matter. The FTC believed

that these items were improper articles that were

not directly linked to the teaching of specific text-

books and each of the providers that had violated

the law were imposed with an administrative fine

in the amount of millions New Taiwan dollars

each.

Unnecessary Gifts Destroy FairCompetition

The FTC believes its strict law enforcement in the

textbook market is justified on the basis that if it

chose not to intervene, and allowed the practice of

giving away gifts to persons that influence deci-

sions on textbook selection, then this would

become a standard practice and necessary to effec-

tively compete in the market that would ultimately

result in increased costs to be borne by the con-

sumer.

In general, any enterprise, which operates a busi-

ness reasonably and finds that it is incurring cost

increases, will look for an appropriate way to shift

that cost burden so that the true cost of production

is accurately reflected in the bottom line. There are

a number of ways in which this can be achieved.

Costs could be recovered by lowering the quality

of textbooks, reducing the quality of supplemen-

tary services, increasing the price of peripheral

products (auxiliary teaching materials such as re-

ference books, test papers and evaluation books) or

simply raising the price of the primary product

itself (i.e. textbooks). As a result, the increased

amount of cost will still be eventually shifted to

students or parents who pay for the goods.

It is this potential adverse impact on the social and

economic wellbeing of Taiwan that forms the basis

of the FTC’s decisions to prohibit the practice of

enterprises’ giving away unnecessary and unrea-

sonable gifts. The FTC, as the competent authority

for competition law, will continue to take these

precautions and regulate enterprises’ practices as a

proactive measure to ensure that fair competition

exists and consumers receive the full economic

benefits that a healthy market can deliver.

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Taiwan FTC Newsletter No.011 / 2008. 12 08

Dear o dear, we made the test paper disappear!

Homework, homework, homework! exams, exam,

exams! If I did not have to do homework or exams,

my world would be a better place

As the quest for educational qualifications

becomes increasingly important, the pressure for

students to succeed results in many of them study-

ing and completing homework every evening until

late at night. Their greatest dream would be to see

textbooks and test papers disappear and not have

to face the monthly tests or end of year exams.

While this might be the student’s dream, it is the

parents’ worst nightmare and in the academic year

of 2006, this dream almost became reality

Enterprises Agreed to Stop Supply ofWorkbooks and Test Papers

In May 2006, the FTC received a complaint that

four textbook providers, including three of the

largest suppliers in the textbook market, had

announced that from the end of 2006 onwards they

would stop giving students workbooks and test

papers that they had previously provided with the

sale of their textbooks. The FTC immediately

opened an investigation to determine whether

these enterprises had entered into an anti-competi-

tive agreement that could damage the textbook

market and affect the rights and benefits of the stu-

dents.

Following the FTC’s investigation, it became

apparent that the four enterprises had, on several

occasions since 2005, utilized association meetings

to discuss ceasing supply of students’ workbooks

and test papers and reached an agreement to do

this with the aim of reducing their costs. At the

same time, the four enterprises commissioned an

attorney to draft an agreement that would be regu-

lated by way of a security deposit form each of the

enterprises. The security deposit would be debited

if any of them failed to abide by the terms and con-

ditions of their agreement. The agreement restrict-

ed the types of items that could accompany the

supply of textbooks to students. It also set out rules

concerning the provision and the safekeeping of

the security deposits and the manner in which

penalties or fines would be imposed.

The attorney who drafted the agreement also

admitted to the FTC that, at the beginning of April

2006, each of the four textbook providers had pro-

vided him with a check which was to be used as

the security deposit.

In order to determine the truth, the FTC sent teams

of officials throughout the nation to participate in

meetings that were held between schools and text-

book providers for the purpose of appraising text-

books. Following the investigation, the FTC was

able to conclude that the sales representatives of

the four enterprises had told many of the teachers

that they would not provide students workbooks

and test papers free of charge after the 2006 aca-

demic year. In some instances the sales representa-

tives even admitted that the enterprises had entered

into a legally binding agreement that precluded

them from continuing the supply of workbooks

and test papers because they risked forfeiting their

security deposits of NT$ 30 million.

In order to verify the evidence the FTC again sent

officials to several elementary schools in a number

of counties and cities to ask staff, familiar with the

selection of textbooks, whether the agreement had

been put in place. The principal and the master

teacher of several schools signed statements attest-

ing to the fact that prior to 2005, workbooks and

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Taiwan FTC Newsletter No.011 / 2008. 12 00909

test papers would accompany textbooks free of

charge. They also confirmed that each of the four

providers had indicated they would no longer pro-

vide these test papers and workbooks after the

2006 academic year.

The motive behind the conduct

The FTC’s investigation highlighted that the real

reason for the enterprises’ agreement to cease sup-

ply of free test papers and workbooks was because

they believed they did not need to provide this

service to students who were compelled to pur-

chase the text books anyway. This belief stemmed

from the unique nature of the textbook market

where there exists a separation between the per-

sons that select the textbooks and those students

that actually purchase the prescribed textbooks.

The people that the enterprises truly wanted to

convince were the teachers that dictated which

textbooks would become the prescribed text for

each particular subject. The FTC’s investigation

found that the sales representatives had voluntarily

told many teachers that instead of providing test

papers and workbooks to students they would give

the teachers gifts. If this concerted action had been

successful, it would have provided the enterprises

with considerable savings which could have been

used to strengthen their bargaining position with

the teachers through the provision of more expen-

sive and elaborate gifts. In this way, the enterprises

could maintain or even increase their market share

and other enterprises which did not participate in

the concerted action could be potentially forced

from participating in the market.

Il legal Concerted Actions HeavyFines!

Articles 7 and 14(1) of the Fair Trade Act provides

that any competing enterprise that, by means of a

mutual understanding, engages in the conduct of

restraining business activities between it and other

competing enterprises by:

jointly determining the price of goods or servi-

ces; or

limiting the terms of quantity, trading counter-

parts, or trading territory; and

whose act was obviously sufficient to affect the

function of supply and demand in the relevant

market, is in violation of the Fair Trade Act.

The total market share of the four textbook pub-

lishers in this case was in excess of 80% of the

domestic textbook market. Consequently, the

mutual understanding of these enterprises to cease

giving students workbooks and test papers had the

effect of restraining competition in the textbook

market and this was sufficient to affect the market

function. Because these four enterprises were held

to have been involved in a serious concerted action

in contravention of Article 14(1) of the Fair Trade

Act, the FTC ordered the enterprises to immediate-

ly cease the unlawful conduct, and imposed

administrative fines totaling NT$ 14.46 million.

Selected Cases

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Taiwan FTC Newsletter No.011 / 2008. 12 10

In recent years, prior to the commencement of the

school term, the FTC monitors the market of back-

to-school articles such as reference books. The

question might be asked Why does the FTC have

such a reaction?

Based on statistics from the Ministry of Education,

the total number of junior high school students in

Taiwan for the academic year, 2007 was 953,000

and elementary school students in the entire nation

for the same year totaled 1,754,000. Unlike

Europe and America, where the use of second text-

books is commonplace, Taiwan generally purcha-

ses new textbooks. The market share of the three

largest enterprises for the textbook industry

(including additional products, such as reference

books and exercise books) exceeds 80% and the

output value is extremely large. For these reasons

the FTC considered it was appropriate to initiate

its own investigations to maintain fair competition

in the market.

According to the FTC’s statistics, the number of

decisions involving textbook enterprises in the 6

years between 2002 and the end of September

2008 was 8 (6 of these matters arose out of action

that the FTC initiated itself). A total of 11 enter-

prises were punished and the amount of adminis-

trative fines imposed was NT$ 30.46 million. On

average, the amount of administrative fines

imposed in each case was NT$ 3.81 million which

is NT$ 2.04 million more than the average amount

of administrative fines imposed for all cases

recorded in the FTC’s statistics in the same period.

Furthermore, as regards types of illegal acts, the

number of cases on illegal concerted actions was 1

(4 enterprises were punished and the amount of

administrative fines imposed on these enterprises

was NT$ 14.46 million). The remaining 7 cases

involved acts of deception and unfair conduct (7

enterprises were punished and the amount of

administrative fines imposed on these enterprises

was NT$16 Million). 3 of these enterprises that

had fines imposed upon them violated the law in

2007 and 2008.

For further information on the application of the

Fair Trade Act to the textbook industry please refer

to the Fair Trade Commission Policy Statements

on the Distribution of Elementary School

Textbooks”. This policy statement can be accessed

at the following web address:

http://www.apeccp.org.tw/doc/Taipei/Decision/dec

SchoolBooks.htm .

Statistics on Cases of Illegal Textbook Enterprises

Statistical Graph of Cases on Illegal Textbook EnterprisesFrom 2002 until the End of September 2008

Acts violating regulations on concerted

actions: 1 case, 12.5%

Number of Cases Administrative Fines

Acts involving deception

and causing obviously

unfair competition:

7 cases, 87.5%

Acts involving deception

and causing obviously

unfair competition:

NT$ 16 million, 52.5%

Acts violating regulations

on concerted actions: NT$

14.46 million, 47.5%

FTC Statistics

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Taiwan FTC Newsletter No.011 / 2008. 12 11

FTC Activities in October 2008

On October 6 and 7, the FTC held the 2008

FTC Personnel Training Course for Staff of the

FTC Service Center on Shift.

On October 7, the FTC held a Fair Trade

Commission Propagation regarding Regulations

Governing the Sales of, and Maintenance and

Repair by, Elevator Enterprises in Taichung.

On October 7, 14, 21, 24 and 27, the FTC held

the Training Course for Staff Relevant to the

Pharmaceutical Manufacturing Industry in

Hsinchu, Taichung, Taipei, Tainan and

Kaohsiung respectively.

On October 8, the FTC convened a workshop to

discuss and amend the Fair Trade

Commission’s Principles for Handling

Technology Licensing Agreements.

On October 17, the FTC convened a workshop

on Problems Relevant to the Application of

Article 21 of the Fair Trade Act on

Advertisements for Real Estate in the

Competition Policy Information & Research

Center.

On October 21, the FTC invited Chairman

CHENG Yu of Chunghwa Telecom Co., Ltd. to

present a speech on Analysis of Competition

Status and Strategies of the Electronic Media

Industry.

On October 21 and 30, the FTC went to the

Chiayi Municipal Sing-an Elementary School

and the Dongshih Township Office, Chiayi

County respectively for the propagation on

Perspectives on Transaction Traps.

On October 22 and 23, the FTC held a 2007

FTC Research and Study Camp on Laws and

Orders for Real Estate in Kaohsiung City.

On October 22 and 28, the FTC went to the

Fortune Institute of Technology and National

Pingtung Institute of Commerce respectively for

the organization of the Training Camp on the

Fair Trade Act for Colleges and Universities.

On October 24, the FTC held the 2008 Speech

Series of the Fair Trade Act Research and

Analysis of the Fair Trade Act on Concerted

Actions of Associations and Other Decisions

in Taichung City.

On October 28, the FTC held the Training

Course for Staff Relevant to the Industry of

Junior High School Textbooks and Elementary

School Textbooks in Taipei.

On October 28, the FTC held the 2008

Advocacy Meeting on Getting Acquainted with

Multi-level Sales Laws and Orders (Taipei

Area) in Taipei County.

FTC Activities

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Taiwan FTC Newsletter No.011 / 2008. 12 12

1 2

1. The FTC held the 2008 FTC Personnel Training Course for Staff of the FTC Service Center on Shift.

2. The FTC held a Fair Trade Commission Propagation regarding Regulations Governing the Sales of, and Maintenance and Repair by, Elevator

Enterprises in Taichung.

3. The FTC held the Training Course for Staff Relevant to the Pharmaceutical Manufacturing Industry (in Taipei).

4. The FTC held a 2007 FTC Research and Study Camp on Laws and Orders for Real Estate .

43

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Taiwan FTC Newsletter No.011 / 2008. 12 13

On October 2 and 16, the FTC took part in the

conference calls of ICN OFWG and ICN MWG

respectively.

From October 13 to 17, the FTC exchanged

with the officials of the Commission for the

Supervision of Business Competition, Komisi

Pengawas Persaingan Usaha on the Training

Plan on Capacity Building and provided the

training course on competition law.

From October 17 to 23, Commissoner CHEN

Chin-Min of the FTC led a team to visit the

Hungarian Competition Authority and took part

in the meeting of the OECD Competition

Committee.

On October 20, Commissoner LIN Yi-Yu of the

FTC represented the Commission to receive

Director Don DIETRICH of the Department of

Commerce in Idaho, United States and both par-

ties exchanged views with respect to issues on

multi-level sales.

On October 29, the FTC had a conference call

with the Mexican competent competition

authority to share its experience on the investi-

gation of a cement cartel.

FTC International Exchanges in October 2008

1. Chairperson TANG Jinn-chuan of the FTC (Middle) received the officials from the Commission for the Supervision of Business Competition, Komisi

Pengawas Persaingan Usaha.

2. A group photograph of the officials of the FTC and the visiting officials of the Commission for the Supervision of Business Competition, Komisi

Pengawas Persaingan Usaha.

3. Commissioner CHEN Chin-Min (second from right) of the FTC led a team to visit the Hungarian Competition Authority (Vice President Tihamér Tóth of

the Hungarian Competition Authority was in the middle of the photograph, and Head József Sárai of the International Section at the Hungarian

Competition Authority is the first from the right).

4. Commissioner LIN Yi-Yu of the FTC (Middle) received Director Don DIETRICH of the Department of Commerce in Idaho, United States (third from left).

3 4

1 2

FTC International Exchanges

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Taiwan FTC Newsletter No.011 / 2008. 12 14

In order to improve the quality of our Taiwan FTC Newsletter, we would like to

request a few minutes of your time to fill in the questionnaire below. When completed,

it would be appreciated if you would please send it by e-mail to [email protected] or

directly fill in the questionnaire at the website (http://www.ftc.gov.tw) before February

10th 2009. Thanks for your assistance and cooperation.

Fair Trade CommissionRegards

Taiwan FTC Newsletter Readers Survey

Nationality :______________________

Category of your organization :Government Embassy Commerce InstitutePrivate Corporation NGO Other (please specify)____________________

1. What do you think of the design of the Taiwan FTC Newsletter, including characters, photos? Very Good Good Average Bad Very Bad

2. Are the texts clear and understandable, or too difficult? Very Clear Clear Average Difficult Too Difficult

3. Are you pleased with the contents of the Taiwan FTC Newsletter, including choice of sub-jects, length and thoroughness of articles?

Very satisfied Satisfied Average Dissatisfied Very Dissatisfied

4. Which section is your favorite one? Special Topic Selected cases FTC Statistics FTC Activites

FTC International Exchanges

5. What more would you like to see in the Taiwan FTC Newsletter? For example what othersubjects? Any other ideas?

Your advice

Dear Readers,

Page 17: A Key to Enlightenment · 2009. 1. 13. · A Key to Enlightenment: History and Special Characteristics of the Textbook Market. 1 4 6 8 10 11 13 CONTENTS Special Topic ... al, there

Taiwan FTC Newsletter

Publisher: Tang, Jinn-ChuanEditor- in-Chief: Hu, Kuang-YuCo-editor: Cheng, Chia-Lin

Tso, Tien-LiangWu,Ting-HungHu, Tzu-ShunCho, Chiu-JungLi, Yueh-ChiaoChang, Ying-Fen

Publishers & Editorial Office: Fair Trade Commission, Executive Yuan, R.O.C.Address: 12-14 F., No. 2-2 Jinan Rd., Sec. 1, Taipei, Taiwan,R.O.C. Website: http://www.ftc.gov.twTelephone: 886-2-23517588Fax: 886-2-23278155E-mail: [email protected] Date of Publication: December 2008First Date of Publication: February 2008Frequency of Publication: Monthly (both Chinese version and English Version)Price: NT$ 30 per single copy, NT$ 500 per year (bothChinese version and English version) and NT$ 250 per language versionSubscription Phone Line: 886-2-2351-0022Subscription Fax: 886-2-2397-4997

Exhibition Place:Service Center on the 13th Floor of the CommissionTelephone: 886-2-2351-0022Address: 13 F, No. 2-2 Jinan Rd., Sec. 1, Taipei, Taiwan,R.O.C.

Wunan Book Co., Ltd.Telephone: 886-4-2226-0330Address: No. 6, Chungshan Road, Taichung City

Printer: Suhai Design and Production Inc.Address: 5th Floor, Building B, No. 35, Guangfu South Road,Taipei CityTelephone: 886-2-2761-8117


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