PX Mart Co (全聯實業) has been fined NT$20 million (US$612,820) by the Fair Trade Commission (FTC) for failing to observe a condition set by the commission in 2022 for the approval of its merger with hypermarket chain operator RT-Mart International Ltd (大潤發), the commission said yesterday.
When the merger application was approved in 2022, PX Mart was asked to honor one of the seven conditions imposed by the commission, which prohibited PX Mart from applying the most favored pricing clause to its merchandise suppliers, FTC said in a statement.
However, after acquiring RT-Mart, PX Mart asked merchandise suppliers to provide the same discounts agreed with other distributors when they applied with the supermarket chain to place their new products on its shelves or raise product prices, the commission said.
Photo: CNA
The failure to observe that condition effectively transferred the risks caused by competition between PX Mart and other retailers to its merchandise suppliers, imposing an unnecessary financial burden on them, FTC said.
Although this has ostensibly increased the benefits for consumers by having low-priced goods on PX Mart’s shelves, the reality is that the move aimed to maintain its own profit margin by undermining competition in the distribution channel, it added.
Companies that fail to perform undertakings required by the commission face a fine ranging from NT$200,000 to NT$50 million, as stipulated by the Fair Trade Act (公平交易法), the commission said.
The FTC also has the power to ask a company to demerge, dispose of all or part of its shares, transfer part of its operations or remove certain people from their positions if the company does not observe the commission’s conditions, the commission added.
Another merger condition was that PX Mart maintain its existing policy of allowing suppliers to obtain shelf space without upfront payments for at least three years after the merger,
In December 2021, PX Mart offered NT$11.5 billion to take over 95.97 percent of the shares in RT-Mart from France-based Auchan Retail International SA and Taiwan-based conglomerate Ruentex Group (潤泰集團).
PX Mart has maintained RT-Mart as a separate brand and retained its management team after the merger.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS