Abstract
Taiwan's cable TV system operators have formed multiple system operators (MSOs), while channel providers have formed multiple channel providers (MCPs). Through horizontal and vertical integration, the mergers have formidable market bargaining power in the channel-licensing market. The Fair Trade Act does not prevent unfair channel licensing trade in Taiwan. This paper recommends an open channel-licensing mechanism, which can be used to remedy the “concerted purchasing actions” of the MSOs and the “concerted selling actions” of the MCPs.
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