Taiwan’s Fair Trade Commission (FTC) imposed a TWD76 million ($2.4 million) fine on Chunghwa Telecom and Taiwan Mobile after concluding they colluded to eliminate 4G discounts in 2017.
The FTC stated the pair jointly opted to cancel free intra-network calls that formed part of discounted 4G packages after the operators’ employees exchanged information on various promotions.
It noted the move prompted rival Far EasTone to follow suit.
The FTC argued the “concerted actions” had a huge impact on the telecoms market, “weakened price competition and seriously affected market functions”.
Chunghwa Telecom was fined TWD40 million and Taiwan Mobile TWD36 million.
Both stated in separate stock market filings they will consider legal action against the ruling after receiving official notification.
Chunghwa Telecom stated the formulation or adjustment of any tariff plan is based on its operational planning considerations. “There was no joint behaviour.”
It added the tariff plan investigated was implemented nearly five years ago and there is already a considerable information gap.
“The authority may not be able to fully clarify and confirm the relevant facts, resulting in a judgment that is unfavourable to the company.”