Abuse of Administrative Power

On 1 November 2014, the People’s Congress of China approved proposed amendments to China’s Administrative Procedure Law (“APL”) respect of private actions against government agencies for abuses of administrative powers.

Although the AML includes an entire chapter addressing abuses of administrative powers, the provisions are considered to be somewhat lacking in bite. The antitrust enforcement authorities are only authorized to provide advice to the body responsible for a government agency which is alleged to have abused its administrative powers. The antitrust authorities are unable to take any action against, or impose any penalties on, the agency themselves. In addition, to date there have been very few private enforcement actions against government agencies as the existing legislation makes it difficult for individuals and entities to bring such actions.

The reforms, which are explained in this article, are intended to rectify the status quo and will take effect from 1 May 2015.
Continue Reading China Toughens Up on Abuses of Administrative Powers

By Susan Ning and Liu Jia

Most recently,a piece of news related to the Anti-Monopoly Law ("AML")indicates that, the National Development and Reform Commission("NDRC")who is in charge of the implementation of the Price Law and price-related antitrust violation, communicated with the State Administration of Radio, Film, and Television("SARFT")1, for SARFT’s proposed draft of Guidance on Further Regulation of Movie Ticket Business("draft Guidance").It is reported that SARFT is suspected of abusing its administrative power for fixing the price of movie tickets.
 

Fact
 

On 26 February 2012, the draft Guidance was posted on the internet by a micro-blogger. According to the draft Guidance, SARFT divides the sales market of movie tickets into several districts, and sets the guided price (i.e.highest retail price) of movie tickets for each of the district.  It also provides that the movie tickets for theater members and group buyers should not be sold for less than 70% of the listed price.Continue Reading Does SARFT Have the Authority to Regulate Movie Ticket Price?