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Andy C.M. Chen

This chapter reviews and analyses the political, economic and legal driving forces behind the competition legislation in Taiwan. We first highlight the legislative history of the Taiwan Fair Trade Act (TFTA) and demonstrate how democratization movements and economic globalization taking off in the 1980s triggered the debates and drafting of the Act. We then provide an overview of how foreign legislations influenced the TFTA legislation process. Against these backdrops, we examine the factors motivating subsequent TFTA revisions and their policy implications for future TFTA enforcement. The major finding from our study indicates that legal transplant and the legal tradition followed by a jurisdiction are the two most crucial factors for Taiwan. Nevertheless, we caution against unexamined embrace of legal transplant. For effective competition legislation, the legislative purposes of the transplanting jurisdictions and the impacts on domestic markets caused by transplant should be clearly understood and tested.