On June 24, 2022, the 35th meeting of the Standing Committee of the 13th National People's Congress reviewed and passed the "Decision on Amending the Anti-Monopoly Law of the People's Republic of China", and the new "Anti-Monopoly Law of the People's Republic of China" will be officially implemented from August 1, 2022.
This is the first modification of the Antitrust Law since its implementation in 2008. The revised Anti-Monopoly Law clearly states that the state will establish and improve the fair competition review system , formulate and implement competition rules that are compatible with the socialist market economy, and improve a unified, open, competitive and orderly market system. The anti-monopoly law enforcement agency of the State Council is responsible for the unified anti-monopoly law enforcement work.
1. Why should the Anti-Monopoly Law be formulated?
In order to prevent and stop monopoly behavior, protect fair competition in the market, encourage innovation, improve economic operation efficiency, safeguard consumer interests and social public interests, and promote the healthy development of the socialist market economy.
2. What content has been modified in this regulation?
1. It clarifies the basic status of competition policy and the legal status of the fair competition review system;
2. Further improves the relevant anti-monopoly system rules;
3. Further strengthens the guarantee of anti-monopoly law enforcement;
4. Improves legal responsibilities and increases penalties.
3. What scope does the Anti-Monopoly Law apply to?
Article 2 of the Anti-Monopoly Law stipulates that "this Law shall apply to the monopoly behavior in the domestic economic activities of the People's Republic of China; if monopoly behavior outside the People's Republic of China excludes or restricts the impact on domestic market competition, this Law shall apply." Article 8 of
stipulates that "organizations with the functions of managing public affairs authorized by administrative agencies shall not abuse administrative power and exclude or restrict competition."
According to the above provisions, my country's Anti-Monopoly Law applies to two types of behaviors: one is the economic monopoly behavior of operators, and the other is the abuse of administrative power to exclude and restrict competition.
4. What are the monopoly behaviors?
According to Article 3 of the Anti-Monopoly Law of the People's Republic of China (hereinafter referred to as the Anti-Monopoly Law), monopoly behaviors include:
1, operators reach monopoly agreements;
2, operators abuse their market dominance;
3, concentration of operators with or may have the effect of excluding or restricting competition.
5. What is a monopoly agreement?
The Anti-Monopoly Law stipulates that a monopoly agreement refers to an agreement, decision or other coordinated act that excludes or restricts competition.
(I) Prohibit operators with competitive relationships to reach the following monopoly agreements:
1, fix or change the price of goods;
2, limit the production quantity or sales quantity of goods;
3, divide the sales market or the raw material procurement market;
4, restrict the purchase of new technologies, new equipment or restrict the development of new technologies and new products;
5, jointly resist transactions;
6, other monopoly agreements recognized by the anti-monopoly law enforcement agency of the State Council.
(II) Operators are prohibited from reaching the following monopoly agreements with counterparties:
1. The fixed price of goods resold to third parties;
2. The minimum price of goods resold to third parties;
3. Other monopoly agreements recognized by the anti-monopoly law enforcement agency of the State Council.
(III) Industry associations shall not organize operators of this industry to engage in monopoly activities prohibited in this chapter.
6. What are the behaviors of operators that abuse their market dominance?
The Anti-Monopoly Law stipulates that operators with market dominance are prohibited from engaging in the following behaviors of abuse of market dominance:
1. Selling goods at unfair high prices or purchasing goods at unfair low prices;
2. Selling goods at prices below cost without a legitimate reason;
3. Refusing to trade with the counterparty without a legitimate reason;
4. There is no justifiable reason, so it is limited to the counterparty who can only trade with him or only trade with his designated operator;
5. There is no justifiable reason to bundle goods, or attach other unreasonable transaction conditions when trading;
6. There is no justifiable reason, differential treatment will be implemented on transaction prices and other transaction conditions for counterparty who have the same conditions;
7. Other behaviors that abuse market dominance determined by the anti-monopoly law enforcement agency of the State Council.
7. What are the situations of operator concentration?
1. Merger of operators;
2. Operators obtain control over other operators by obtaining equity or assets;
3. Operators obtain control over other operators through contracts or other means or can exert a decisive influence on other operators.
