Regulation Compliance:

Regulatory compliance is not only the practice of integrity, but also the core of decreasing operational risks and sustainable developments. ASUS products and services are spread across the world. To ensure that the products and services meet the global regulations, we have a designated legal department that pays close attention to the establishment and development of regulations that have potential influence on ASUS, tracks and evaluates on regulations, and establishes the compliance mechanism of policies and regulations, assisting each department to conform to and implement relevant regulations.

To effectively monitor the regulations, ASUS has established the "ASUS Internal Regulation Identify Management Measures" which identifies and manages environmental, operational, and service-related regulations. Based on the balance principle, we disclose public criminal law cases or administrative law cases that were fined more than 1.5 million NTD or seriously affected the operation of the company in the corporate social responsibility report. We will disclose the identification and the compliance status in the annual CSR report.

European Commission Investigation

In 2017, the European Commission opened a proceeding against ASUS for imposing fixed or minimum resale prices on its online retailers, in Germany and France between 2011 and 2014, in breach of EU competition rules. This case was closed in 2018, and ASUS was fine $63 million euros (about $2.25 billion New Taiwan dollars).

We have always attached great importance to compliance and complied with relevant regulations. In the face of the antitrust issue, we promote the "Employee Code of Conduct" to employees around the world regularly and put it into practice in employee education and work procedures to ensure that similar mistakes will not occur again. In addition to the employees at the Taiwan headquarters, in 2018, the focus was placed on the employee training in Europe, and external antitrust attorneys were appointed to lecture in each European subsidiary. In 2019, the anti-monopoly regulations will apply to other regions; the Code of Conduct and training contents are updated constantly in response to the latest laws and regulations management platform. All the training materials and records are integrated into the ASUS School training management platform.