The Taipei High Administrative Court on Tuesday upheld fines issues to seven snorkeling companies on Siaoliouciou Island (小琉球) for conspiring to increase prices during the COVID-19 pandemic.
The court said that it upheld the penalties issued by the Fair Trade Commission following an appeal by seven of the 21 companies, which were fined NT$100,000 to NT$150,000 by the commission in February last year.
The case dates to 2021, when snorkeling and scuba tour companies on the Pingtung County-administered island were ordered to close from May 8 to Aug. 24, before being allowed to reopen with health restrictions in place.
Photo: Chen Yen-ting, Taipei Times
During that time, the commission found that the Xiaoliu Tourism Development Association and 21 snorkeling companies on Siaoliouciou held a meeting on Aug. 18, 2021, at which they agreed to uniformly raise the standard rate for snorkeling customers to NT$400 from NT$300 to NT$350.
The commission ruled that the companies had engaged in concerted action forbidden by Article 15 of the Fair Trade Act (公平交易法).
However, it said it issued “relatively low” fines in consideration of the financial difficulties the firms faced at the time.
Following the decision, seven of the companies appealed, arguing that the price hike was only a “recommendation,” and was necessary to offset losses from the months-long forced closure of their businesses.
Even after being allowed to reopen, the maximum number of customers a guide could take out was capped at five, down from 10, and mouthpieces on snorkeling masks had to be replaced after every use, resulting in higher costs, they said.
On Tuesday, the court sided with the commission, saying that the companies had acted jointly to restrict the free setting and competitive adjustment of prices, thus harming the rights of consumers.
The court cited messages in a group on the Line messaging app, meeting minutes and a joint statement issued by the companies that showed they discussed and passed a resolution to increase prices in a concerted manner.
Even though the resolution was not binding, all but one of the firms raised their prices to NT$400 and agreed to mutually supervise each other by uploading info on any company that unilaterally lowered its prices, the court said.
The ruling can be appealed.
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