Find out the real significance of China’s new anti-monopoly law in the context of the modern world of antitrust and competition law.

China’s anti-monopoly law is enacted for the purpose of preventing and restraining monopolistic conducts, protecting fair competition in the market, enhancing economic efficiency, safeguarding the interests of consumers. The new AML is a tremendous leap forward for China, bringing it squarely into the modern world of antitrust and competition law.

On November 10, 2020, China’s State Administration for Market Regulation (“SAMR”) issued the draft of the Guidelines for Anti-monopoly in the Platform Economy (“Guidelines”) in order to prevent and stop monopolistic behavior in the platform economy, guide operators to operate in compliance with laws and regulations and promote the sustainable and healthy development of the online economy.

The move comes after China kicked off an investigation into alleged monopolistic practices at Alibaba Group Holding Ltd. last month. The Chinese regulators threatened to throttle the company’s businesses over such practices.

Government agencies will remain highly vigilant against risks from private funds, online lending, and apartment renting platforms amid the coronavirus outbreak.

 

New Provisions in China’s New Anti-Monopoly Law

 

Article 1– This Law is enacted for the purpose of preventing and restraining monopolistic conduct, protecting fair competition in the market, enhancing economic efficiency, safeguarding the interests of consumers and the public interest, and promoting the healthy development of the socialist market economy.

 

Article 2– This Law is applicable to monopolistic conduct in economic activities within the People’s Republic of China. This Law is applicable to conducts outside the territory of the People’s Republic of China if they eliminate or have restrictive effects on competition on the domestic market of the PRC.

 

Article 3– “Monopolistic conduct” is defined in this law as any of the following activities:

(i) Monopolistic agreements among undertakings.

(ii) Abuse of a dominant market position by undertakings.

(iii) Concentration of undertakings that eliminates or restricts competition or might be eliminating or restricting competition.

 

Article 4– The State shall formulate and implement competition rules which are in accordance with the socialist market economy and improve macroeconomically and advance a unified, open, competitive, and orderly market system.

Article 5– Undertakings may concentrate if such conduct is in accordance with the law, achieved through fair competition and voluntary alliance and expands the scope of operation, and enhances competition ability.

Article 6– Undertakings with a dominant position shall be prohibited to abuse that dominant position to eliminate or restrict competition.

 

The authority for enforcement of the Anti-monopoly Law

The authority for enforcement of the Anti-monopoly Law under the State Council may, in light of the need of work, empower the appropriate departments of the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government to take charge of relevant enforcement of the Anti-monopoly Law in accordance with the provisions of this Law.

 

The rules, issued by the State Administration for Market Regulation (SAMR) on its website, bar companies from a range of behavior, including forcing merchants to choose between the country’s top internet players, a long-time practice in the market. The new AML is a tremendous leap forward for China, bringing it squarely into the modern world of antitrust and competition law.

Share with friends:

Leave a Reply

Your email address will not be published. Required fields are marked *