Antitrust

SAMR Issues the Regulations on the Handling of Fair Competition Review Reports

On October 13,2024, in order to properly handle reports related to fair competition reviews and to strengthen the supervision and safeguarding of fair competition review work, in accordance with the provisions of the Anti-Monopoly Law of the People's Republic of China and the Regulations on Fair Competition Review, the State Administration for Market Regulation (“SAMR”) formulated and announced the Regulations on the Handling of Fair Competition Review Reports.[1]

Draft of Private Economy Promotion Law Open for Public Comments: Special Chapter on Fair Competition Included 

On October 10, to implement the decisions and deployment of the Central Committee of the Communist Party of China and the State Council, further optimize the development environment for the private economy, ensure fair competition among various economic organizations, and promote the healthy development of the private economy and the growth of private entrepreneurs, the Ministry of Justice and the National Development and Reform Commission, in conjunction with relevant parties, have established a legislative drafting team to study and draft the People's Republic of China Private Economy Promotion Law (Draft for Comments). Comments from the public are now being solicited.[2]

Anhui AMR：15 Antitrust Cases Filed in Recent Years, Boosting Oversight in Insurance, Healthcare, Education Sectors

On October 29, 2024, He Hanxiang, deputy director of the Anhui Administration for Market Regulation (“AMR”), stated that in recent years, the Administration has continuously strengthened the supervision and law enforcement of anti-monopoly and anti-unfair competition in key areas. They have carried out special actions for anti-monopoly enforcement and anti-unfair competition, focusing on supervision and law enforcement in livelihood sectors such as insurance, pharmaceuticals, and education. A total of 15 cases involving monopoly agreements and abuse of dominance have been filed for investigation, and 2,886 cases of unfair competition have been handled, contributing to the improvement of market competition.[3]

SAMR Issues “11. 11” Compliance Alert - Illegal Acts such as “Choosing one from two” Strictly Prohibited

On October 28, the SAMR issued the 11.11 Online Centralized Promotion Compliance Alert to major e-commerce platforms to regulate promotional operations, maintain the order of online transactions during the “11.11” period, and protect the legitimate rights and interests of consumers, which includes strict regulations on promotional behavior. Strictly prohibit illegal exclusive trading practices such as “Choosing one from two”, to promote fair and orderly participation in market competition from eight aspects.[4]

2 Years of Pilot Authorised  Review for Concentration of Undertakings: 854 Cases Reviewd by Provincial AMR

On October 21, the SAMR announced that since August 1, 2022, when the pilot Authorised antitrust reviews of concentrations of undertakings was launched in Beijing, Shanghai, Guangdong, Chongqing, and Shaanxi, a total of 854 cases have been delegatedto local authorities for review, accounting for 57.74% of all cases during the same period. The quality and efficiency of the pilot delegated antitrust reviews for concentrations of undertakings have steadily improved, making the market environment fairer and more dynamic, and promoting new momentum into high-quality economic development.[5]

State Council Executive Meeting: To Advance Special Rectification in Areas of Illegal Tax Rebates, Government Service Purchases, and Obstacles to Fair Competition

On October 18, Premier Li Qiang of the State Council presided over a regular meeting of the State Council, where they discussed and arranged measures to further promote the construction of a unified national market. The meeting highlighted that advancing the construction of a unified national market is a systemic reform, essentially aimed at fostering a more equitable and orderly development environment for businesses. It was emphasized that special rectification efforts should be advanced in areas such as the improper return of fiscal and tax incentives, government procurement services, and practices that impede fair competition.[6]

SAMR Hosts Antitrust Compliance Training and Outreach for Industry Associations and Livestock Industry

From October 14 to 17, the SAMR held a training session on improving the antitrust compliance capability of industry associations in Shenzhen, Guangdong Province. Representatives from 59 national industry associations attended. On October 18, the SAMR and the Ministry of Agriculture and Rural Affairs jointly held the sixth antitrust compliance lecture in Beijing to carry out antitrust compliance advocacy for the livestock industry.[7]

National Development and Reform Commission: Strive to Crack Local Protection, and Promote Enterprises of All Types of Ownership to Participate in Market Competition Fairly

On October 8, The Information Office of the State Council held a press conference on the relevant situation of "Systematically implementing a package of incremental policies to solidly promote the upward economic structure and the sustainable development trend." Zheng Bei, deputy director of the National Development and Reform Commission, stated that efforts should be accelerated in revising the Tendering and Bidding Law, focusing on breaking local protectionism, promoting fair market competition among enterprises of all ownership types, and speeding up the process of cleaning up laws, regulations, and policies that involve unequal treatment of enterprises, in order to dismantle institutional barriers that hinder fair competition among businesses.[8]

Tianjin Administration for Market Regulation Fined 10 Motor Vehicle Testing Companies Over Price-Fixing Cartels

On October 24, 2024, the Tianjin Administration for Market Regulation issued an administrative penalty decision regarding 10 motor vehicle testing companies in Tianjin that reached and implemented a monopoly agreement, which involved price-fixing cartels.[9]

LONGi and HOPEWIND Fined RMB 0.7 Million Respectively by SAMR for Gun Jumping 

On October 1, the SAMR announced the penalty decision against Xi 'an Longji Hydrogen Technology Co., Ltd. and Shenzhen Hopewind Electric Co., Ltd. for gun jumping, due to their voluntarily surrendering, Each company was fined RMB 0.7 million.[10]

Supreme People’s Court Held a Trial of Anti-monopoly Administrative Litigation: Plaintiff Cement Association and Cement Enterprises Penalized by Shaanxi Administration for Market Regulation for Horizontal Monopoly Agreement

On October 19, 2024, The Intellectual Property Court of The Supreme People’s Court of China issued an opening announcement, which included an antitrust administrative lawsuit. The plaintiff, a cement association and cement enterprises, had previously been administratively penalized by the Shaanxi Administration for Market Regulation for a horizontal monopoly agreement.[11]

Huang Yong: Leverage competition policy to guide and improve marketization in the financial sector

On October 19, 2024, at the “Strengthening Economic and Financial Cooperation, Building Consensus for Coordinated Development” parallel forum on the rule of law, held during the 2024 Financial Street Forum Annual Conference hosted by the Beijing Financial Court, Huang Yong, Executive Deputy Dean and Professor at the Institute of Foreign Trade and Economic Law of the University of International Business and Economics, stated that the foundational status of competition policy has been enshrined in law. Moving forward, it is even more necessary to leverage the guiding role of competition policy alongside fiscal and monetary policies to further perfect the marketization in the financial sector.