compliance

Subscribe to compliance via RSS

By Susan Ning, Ding Liang, Shan Lining and Angie Ng

On 29 December 2010, the National Development and Reform Commission (NDRC) issued rules entitled "Rules on Anti-Price Monopoly"(rules).  These are the first rules to provide further guidance in relation to the price-related prohibitions of the Anti-Monopoly Law (AML). [Note: The NDRC issued these rules in draft form for the first time in September 2009.]  The rules will be effective as of 1 February 2011.

Broadly, the rules expand on and provide further guidance to the prohibitions against anticompetitive agreements and against an abuse of dominance within the AML.
 Continue Reading Rules on Anti-Price Monopoly – effective 1 February 2011

By Susan Ning, Huang Jing and Angie Ng

We often receive queries from clients in relation to whether group restructures need to be notified to the Ministry of Commerce (MOFCOM) for antitrust merger control clearance.

This article provides some general guidance as to when a group restructure needs to be notified to MOFCOM for antitrust merger control clearance.Continue Reading When do group restructures need to be notified?

By: Susan Ning and Ding Liang

On 22 December 2010, the Minister of Commerce Chen Deming stated in his annual working report at the 2010 National Commerce Work Conference that the Ministry of Commerce (MOFCOM) intends to combine the following processes: (a) administration of foreign investment; (b) anti-monopoly merger control review; and (c) national security review from next year. 
According to Minister Chen’s report, the main objective in combining the above mentioned processes is to "protect the security of domestic industries".

It is not clear how the processes in (a) to (c) as mentioned above will be combined or integrated.  This article provides a brief overview of how the processes set out above are currently being conducted.Continue Reading Foreign Investment Approval + Antitrust Merger Control Review + National Security Review – a Combined More Streamlined Process?

By: Susan Ning and Shan Lining

On 20 December 2010, the Beijing Second Intermediary People’s Court (the Court) issued a first instance ruling on an Anti-Unfair Competition Law dispute between Baidu (the largest Chinese search engine provider) and 360 (a large security software provider).  The Court ruled in favor of Baidu, ordering 360 to pay damages amounting to RMB385,000.

At the time of writing, we were unable to obtain a copy of the first instance judgment – thus, this article sets out the facts of the case, based on public or press reports:1Continue Reading The Baidu/360 Anti-Unfair Competition Dispute – First Instance Ruling

By: Susan Ning, Zheng Ziqing and Angie Ng

On 18 December 2010, Mr Shang Ming (Chief of the Antimonopoly Bureau, of the Ministry of Commerce or MOFCOM) delivered a speech at an academic conference entitled "International Symposium on Enforcement of China’s Anti-Monopoly Law in the New Economy" held at Beijing’s People’s University.

During Mr Shang’s speech, he revealed the following facts and figures about MOFCOM’s merger control regime:Continue Reading 2010 Merger Control Stocktake – China

By: Susan Ning, Shan Lining and Angie Ng

On 17 November 2010, the National Development and Reform Commission (NDRC) organized a "price monopoly" workshop in Chengdu to take stock of: (a) developments in relation to price related breaches of the Anti-Monopoly Law (AML); and (b) developments in relation to provincial level price authorities and their enforcement of the AML (see our article entitled "Provincial Price Authorities and the AML" dated 20 November 2010.[1]Continue Reading Price Related Breaches of the AML and the Price Law – How Many Public Cases Have There Been?

By:  Kenneth Y. Choy of King & Wood’s Hong Kong office and Antitrust & Competition Group

Tai Po is a traditional village located in the northeastern part of the New Territories in Hong Kong. Its historical relics, old temples, quaint fishing village and natural scenery make it a popular destination for both tourists and local residents alike.

The Hong Kong government began building up Tai Po in the late 1970’s, transforming it from a sleepy fishing community into a bustling new town of 300,000. In the last decade, the Government decided to tear down the old to make way for new facilities in the area. As part of the development, the old Tai Po Temporary Market which had housed many small cooked food stalls was replaced with a brand new complex. Stallholders who operated the cooked food stalls were vacated by the Food and Environmental Hygiene Department, the governmental agency that manages cooked food markets and relocate to the new facility.Continue Reading Legal for now: Collusion among bidders at Hong Kong auctions

By: Susan Ning, Shan Lining, Liu Jia and Angie Ng

On 10 December 2010, the State Council published and enacted a set of revised penalty regulations[1] (vis-à-vis the Price Law 1997). 

Broadly, the penalties set out in these revised penalty regulations are more severe than the previous version. 

Of note is the fact that there is a new Article 5 which outlines more severe and specific remedies in relation to breaches amounting to price-fixing. In addition, the new Article 19 introduces criminal sanctions for breaches of the Price Law 1997 which severely disrupt the market order in China.Continue Reading If You Fix Prices, Beware of the Price Law and the Anti Monopoly Law

By: Susan Ning, Ding Liang and Huang Jing

On 22 November 2010, the National Development and Reform Commission (NDRC) announced1 that it was in the process of determining remedies against eight oil companies for selling diesel above the maximum prices set by the Government.

The eight companies are: (a) Shaanxi Petroleum Chemistry Industry Trade Company; (b) Shaanxi Yanchang New Resources Co., Ltd; (c) Shanxi Yanlian Petroleum Chemistry Co., Ltd Xi’an Supply Store; (d) Shandong Jincheng Petroleum Chemistry Group Company; (e) Jiangsu Province Lianyungang PetroChina Sales Co., Ltd; (f) Sinopec Wuhan branch company; (g) Sinopec Luoyang branch company; (h) PetroChina Wuhan branch Company. [Note: The companies listed in (e) to (h) are State Owned Enterprises (SOEs).]Continue Reading Eight Oil Companies in Trouble for Breaching Price Law