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Taipei, March 26 (CNA) The Taipei High Administrative Court on Tuesday upheld fines against seven snorkeling companies on Pingtung County’s Xiaoliuqiu island for conspiring to jointly raise prices during the COVID-19 pandemic.

In its verdict, the court said it upheld the penalties issued by the Fair Trade Commission (FTC) following an appeal by seven of the 21 companies the commission fined NT$100,000 (US$3,134) to NT$150,000 in February last year.

The case dates to the COVID-19 pandemic, during which time snorkeling and scuba tour companies in Xiaoliuqiu were ordered to close from May 8-Aug. 24, 2021, before being allowed to reopen with various health restrictions in place.

During that time, the FTC found, 21 snorkel companies on Xiaoliuqiu and the Xiaoliu Tourism Development Association held a meeting on Aug. 18, 2021, where they agreed to uniformly raise the standard rate for snorkeling customers from NT$300-NT$350 to NT$400.

The FTC determined that the companies had engaged in illegal concerted action under Article 15 of the Fair Trade Act, but said it had decided to issue relatively “low” fines in consideration of the financial difficulties they faced at the time.

Following the FTC decision, seven of the snorkeling companies filed an appeal, arguing that the price hike was only a “recommendation,” and was necessary to offset losses from the months-long forced closure of their businesses.

Even after being allowed to reopen, they said, the maximum number of customers a guide could take out was capped at five, down from 10 originally, and mouthpieces on snorkeling masks had to be replaced after every use, resulting in lower revenues and higher costs.

In its verdict Tuesday, the Taipei High Administrative Court sided with the FTC, concluding that the companies had acted jointly to restrict the free setting and competitive adjustment of prices, thus harming the rights of Taiwanese consumers.

As evidence, the court cited group Line chats, meeting minutes and a joint statement issued by the snorkeling companies, which showed that the companies discussed and passed a formal resolution to raise their prices in a concerted manner.

Even though the resolution was not binding, all but one of the companies investigated by the FTC raised their snorkeling prices to NT$400, and agreed to mutually supervise each other by uploading info on any company that unilaterally lowered its prices, the court said.

The ruling can be appealed.

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