Ferry Price-Fixing Scandal Rocks Taiwan's Xiaoliuqiu Island: Operators Fined Millions

Eight Ferry Companies Penalized for Colluding to Inflate Ticket Prices, Impacting Tourists in a Popular Taiwanese Destination.

Taipei, April 16 - Taiwan's Fair Trade Commission (FTC) has levied a total of NT$11 million (approximately US$338,683) in fines against eight ferry companies operating services to Xiaoliuqiu island, a decision announced on Wednesday. The companies were found guilty of illegal price-fixing activities, impacting visitors to this popular tourist destination.

The FTC's ruling stated that the eight companies, which operate ferries connecting Pingtung's Donggang Harbor to Xiaoliuqiu, engaged in "concerted actions" that violated fair competition regulations. This action aimed to artificially inflate ticket prices for travelers.

Before the price-fixing took place in 2022, the companies were offering standard round-trip tickets to guests at Xiaoliuqiu guesthouses for prices below NT$370, with discounted tickets for children and seniors priced under NT$200, according to the commission's findings.

The investigation revealed that in November and December 2022, two ferry operators, Leuco Sapphire Shipping and Tai-fu International Shipping Co., orchestrated meetings with their six competitors. During these gatherings, it was agreed that ticket prices would be raised collectively in the following year. This collusion led to the manipulation of prices, harming consumers.

As a result of this agreement, the companies initially increased prices to NT$370 and NT$200 from January 1, 2023. Following this initial price hike, the companies further increased ticket prices from April 1, 2023, setting adult tickets at NT$450 and NT$225 for children and seniors. One-way tickets were set at NT$250 for adults and NT$125 for children and seniors.

Following a thorough investigation, the FTC imposed significant fines: Leuco Sapphire received a fine of NT$4.3 million, while Tai-fu International was fined NT$2.5 million. The remaining six companies were each penalized NT$700,000 for their involvement in the price-fixing scheme.