TFTC Publishes Report and Policy Statement on Competition Law Issues Related to Generative AI
On March 18, the Taiwan Fair Trade Commission (“TFTCâ€) formally finalized and published on its website its Compilation Report of Public Comments and Policy Statement on Competition Law Issues Related to Generative Artificial Intelligence (the “Report and Policy Statementâ€).
According to the TFTC’s press release, the Report and Policy Statement was published in response to the rapid expansion of generative artificial intelligence (“Generative AIâ€) applications and their growing importance as a key driver of the next phase of the digital economy. The TFTC noted that innovation arising from these technological developments has the potential to reshape existing market structures and competitive dynamics at any time.
Based on the same press release, the Report and Policy Statement compiles public comments received during the consultation process and organizes them around seven key competition issues: (i) restrictions on access to critical inputs such as chips and data; (ii) self-preferencing by cloud service providers and barriers to switching between providers; (iii) tying and ecosystem integration; (iv) talent mobility; (v) mergers and acquisitions; (vi) concerted actions; and (vii) improper marketing practices. Based on feedback from various sectors, the TFTC sets out its enforcement perspective and policy direction on these issues, while also providing several illustrative examples intended to serve as compliance guidance for businesses.
The TFTC further noted that the initial findings from the public consultation suggest that Generative AI shares the characteristics of the digital economy identified in its previously released White Paper on Competition Policy in the Digital Economy. Accordingly, the TFTC indicated that it will continue to apply the enforcement principles set out in the White Paper to Generative AI, with its current regulatory approach centered on four key principles: “Issue/Evidence-Driven,†“Local Nexus,†“Contestability,†and the “Rule of Reason.â€
According to the TFTC’s website, the English version of the Report and Policy Statement is currently being prepared and will be published once the translation is complete.
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This publication is intended to highlight selected legal developments and not to be comprehensive nor to provide legal advice. If you have any questions on issues reported here or if you have any issues you would like to see covered in future editions, please contact the editors:
Dannie Liu, at +886-2-8725-6605,
dannieliu@yangminglaw.com
Fran Wang, at +886-2-8725-6607,
franwang@yangminglaw.com
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