TAIWAN Trends and Developments Contributed by: Stephen Wu, Yvonne Hsieh, Wei-Han Wu and Erica Chiu, Lee and Li, Attorneys-at-Law
emphasis on environmental sustainability issues. Con - sequently, it is reasonable to anticipate that the TFTC may adopt this perspective in future merger control reviews involving such issues. Specifically, when assessing whether a transaction’s overall economic benefits outweigh the disadvantages arising from competition restrictions in merger control reviews, the TFTC may incorporate an analysis of environmental sustainability within the scope of “overall economic benefits”. In other words, if the transaction demonstra - bly enhances environmental sustainability, the TFTC may consequently determine that the transaction con - tributes positively to the overall economic benefits, and will therefore render a favourable decision with respect to the transaction. This was seen in two recent merger filing cases that have been approved by the TFTC. The first involved the electricity sector. On 2 July 2025, the TFTC green-lit a joint operation by China Steel Corporation, Chunghwa Telecom Co., Ltd. and oth - ers in the electricity purchases and sales business of Taiwan Smart Electricity & Energy Co., Ltd. Because Taiwan Smart Electricity & Energy Co., Ltd had limited market power in both procuring offshore wind power and selling renewable energy, competition restriction was not a major obstacle in this case. Furthermore, this venture aligns with the government’s initiative to liberalise the offshore wind power and renewable energy sales market, thus contributing to “overall eco - nomic benefits”. This outcome suggests that the gov - ernment’s energy policies focusing on environmental sustainability and its competition policies can effec - tively work together. The second relates to the commercial vehicle markets, particularly “heavy-duty trucks”, “light-duty trucks” and “heavy-duty buses”. In January 2026, the TFTC approved the merger of Hino Motors Ltd. and Mitsubi - shi Fuso Truck and Bus Corporation, despite the com - panies holding the top two positions in the “heavy- duty trucks” market. One of the grounds supporting the TFTC’s clearance is that the merger aligned with the global shift towards net-zero carbon emissions. The commercial vehicle sector is currently experienc - ing rapid electrification and intelligent advancements. In this context, the TFTC reasoned that the merger would facilitate resource integration and expedite
research, development and innovation in low-carbon and advanced vehicle technologies, thereby support - ing the net-zero emissions target. Consequently, the TFTC did not block the merger, deeming the “over - all economic benefits” to be more significant than the potential impact on competition. This marks the first instance where environmental sustainability has directly influenced a TFTC decision and, given the Tai - wan government’s 2050 net-zero emissions target, it is unlikely to be the last. Therefore, understanding how environmental sustainability influences the TFTC’s decision-making process warrants continued atten - tion and observation. Outlook – A Balanced Approach Toward the Review of Merger Filing, and Future Focus on ESG and AI Issues On several occasions during the past few years, the TFTC has repeatedly proposed to remove the mar - ket share filing thresholds under Article 11 of the TFTA. The latest attempt was in January 2024, when the TFTC proposed an updated version of the draft amendments (“2024 Draft Amendments”) and invited comments from various stakeholders, including indus - try associations, scholars and government agencies. The proposal to remove the market share filing thresh - olds under the 2024 Draft Amendments was basically the same as that under the 2023 Draft Amendments. However, minutes from the TFTC Commissioners’ meeting on 28 May 2025 suggest that the amendment draft has since been withdrawn. There is no indication whether the TFTC will continue to pursue the removal of the market share filing threshold. As the TFTA ventures into new areas such as AI and ESG, which are gaining prominence in the market, the TFTC is expected to continuously monitor and update relevant guidelines and policies, in order to stay aligned with global trends. These areas are also expected to play a major role in shaping the TFTC’s future decisions and actions. Consequently, business - es operating in or planning to enter Taiwan should stay informed about these developments and seek appropriate consultation to avoid non-compliance or operational challenges.
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