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Four Provisions Supplementing Anti-Monopoly Law of China to Take Effect 15 April 2023

To implement the Anti-Monopoly Law of China revised in 2022 and further consolidate the anti-monopoly legal system and legislation, the State Administration for Market Regulation (SAMR) recently issued four provisions supplementing the Anti-Monopoly Law, namely, Provisions on Curbing Abuse of Administrative Power to Eliminate or Restrict Competition, Provisions on Prohibiting Monopolistic Agreements, Provisions on Prohibiting Abuse of Market Dominant Position, and Provisions on Examination of Concentration of Undertakings (together "the four provisions"), all of which will come into effect on 15 April 2023.


The four provisions address prominent issues in anti-monopoly-related regulation and enforcement in the following ways:


First, refine relevant provisions of the Anti-Monopoly Law, by, among others, on the basis of the revised Anti-Monopoly Law, detailing the content, procedures, and methods of administrative interview and the "stop the clock" mechanism for suspension of examination of concentration of undertakings; clarifying the scope of "competitive operators" in horizontal monopoly agreement and the factors for determination of "control" and "implement concentration" in the examination of concentration of undertakings; expounding the specific manifestations of "organise other operators to reach a monopoly agreement" and "provide substantial assistance to other operators in reaching a monopoly agreement" in hub-and-spoke agreement; and optimising the calculation of the turnover of an operator involved in concentration of undertakings.


Second, optimise the supervision and enforcement procedures, by, among others, specifying the obligation of relevant units and individuals to cooperate during the investigation of abuse of administrative power to eliminate or restrict competition as well as the obligation of the units under investigation to report in writing the status of rectification; improving the provisions on the examination and investigation of concentration of undertakings that does not meet the notification threshold but there is evidence to prove that the case has or may have the effect of eliminating or restricting competition; optimising the summary proceeding for examination of concentration of undertakings; and standardising the suspension of investigation, termination of investigation, and case report filing procedures during investigation of monopoly agreement and market dominance abuse case.


Third, strengthen the legal responsibilities of relevant entities, by, among others, setting forth the scope of application for reduction or exemption of penalties imposed on the legal representatives, main persons in charge and directly responsible personnel bearing personal liability in monopoly agreement; detailing the responsibilities and obligations of the notifier of concentration of undertakings and its agent, and optimising the rules for appointing an agent.


Date:2023-03-28Return to List
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