The Fair Trade Commission has issued the highest fine in history to a Japanese tobacco company for violating the Fair Trade Act by colluding to increase the prices with its 31 distribution companies last June. The company has been ordered to pay 21.9 million NT dollars in fine.

Local tobacco companies violated anti-trust measure and were fined with the highest fine issued in Taiwan.

According to Fair Trade commission, the Japanese tobacco company has about 20% of the domestic market, which got together with 31 of its distribution companies and asked them to pay guarantee fund to ensure each other would follow suit to raise prices.

All 31 companies raised prices at the same time, an act which was fined NT$21.9 million, which is the highest fine ever issued in Taiwan.

The commission was able to bust the unfair trade act through investment and witnesses, finding out that the guarantee fund method was used to restrict the 31 companies, with even an accountant hired to manage the guarantee fund.

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