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Taipei, Feb. 21 (CNA) Twenty-one snorkeling shops on Liuqiu Island were collectively fined NT$2.35 million (US$77,266) for price fixing and increasing prices by 17 percent to 25 percent, the Fair Trade Commission (FTC) said in a statement Tuesday.

The FTC said the 21 operators constitute a majority of shops providing snorkeling services on the island, located southwest of Taiwan proper, into which the commission launched an investigation and found evidence of price fixing after receiving an allegation of collusion.

The investigation revealed that the Little Liuqiu Tourism Development Association initiated the development of post-COVID-19 operational guidelines for local snorkeling shops on Aug. 18, 2021, the FTC said.

In addition to assisting with applications for the resumption of snorkeling business, the association also had a Line group for operators to exchange opinions before reaching agreement on a range of prices, after which the parties continued checking the agreed price was being observed.

The collusion saw the snorkeling fee per person rise from NT$300 to NT$350-400 after Aug. 24, 2021, when snorkeling activity was resumed around the island, following a complete suspension from May to August, 2021, due to the COVID-19 pandemic, the FTC said.

The price fixing was agreed on the back of ballooning costs as the shops observed epidemic-related rules and took corresponding action, the FTC said.

In the announcement detailing the names of the guilty operators, it was noted that shops also cut the number of people on snorkeling groups from 10 to five, with the increased costs reflected in the higher price.

This constituted collusion as banned by Article 15 of the Fair Trade Act, the FTC said. However, after taking into consideration the impact of the pandemic on the businesses, the FTC decided to fine each operator NT$100,000 to NT$150,000, with the local association also fined NT$150,000 for facilitating the price fixing, the FTC said.

However, many of the Liuqiu operators are unhappy with the fines.

In a phone interview with CNA, Hsu Po-han (許博翰), who chairs the Little Liuqiu Tourism Development Association, said there was no collusion because none of the precaution against the disease would have been possible without the extra charges.

Another fined shop owner, surnamed Tien (田), also denied the FTC’s claim of collusion. According to Tien, the snorkeling fee per person used to vary from NT$300 to NT$500, and the decision to set a uniform standard was an effort to boost local tourism.

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