Comments to SAMR on Draft Revisions to the Anti-monopoly Law of the People's Republic of China (Draft for Comment)

2020-01-31 | All chapters

The Anti-monopoly Law Draft adapts to the current Chinese rule of law environment, strengthens the deterrent on monopoly behaviour, and greatly increases the force of punishment; meanwhile, it refines the regulations on investigation and enforcement, stipulating the three types of core cartel agreements that cannot suspend investigations, and listing the additional determination factors of dominant market position for an undertaking in the internet sector; introduces some new regulations for the review of mergers and acquisitions, including the definition of control rights, the dynamic adjustment of reporting thresholds, the "stop meter" system for review time limits, and the liability for false reporting information; significantly strengthens the investigation power of anti-monopoly law enforcement agency, including stipulating that public security agencies should assist investigations in accordance with law.

 

However, while the enforcement power of the anti-monopoly law enforcement authority under the State Council is strengthened, the Draft lacks clear regulations on its conduct during the enforcement process, thus lacking measures to limit the abuse of power, and that the anti-monopoly law enforcement agency has too much discretion over the amount of fines.

 

The EUCCC also welcomes the promulgation of all following Implementing Regulations to “replace” but not just “amend” the set of Anti-monopoly Law of 2007: namely, the Measures for the Undertaking Concentration Declaration, the Provisions for the Industry and Commerce Administrations on the Prohibition of Monopolistic Agreements, the Provisions for the Industry and Commerce Administrations on the Prohibition of Abuse of Dominant Market Position, the Provisions for the Industry and Commerce Administrations to Stop Acts of Abusing Administrative Power for the Purpose of Eliminating or Limiting Competition and the Provisions on the Standard for Declaration of Concentration of Business Operators, etc.