Administrative monopoly

By Susan Ning, Chai Zhifeng, Gong Ting, Zhang Tianjie   King & Wood Mallesons’ Commercial & Regulatory Group

Runtitledegulated by Chapter V of the Anti-monopoly law (“AML”), abuse of an administrative monopoly is interpreted as a kind of abuse of administrative powers to grant favourable conditions to preferred enterprises at the expense of others. Up to now, the National Development and Reform Commission (“NDRC”) has published 6 cases about the antitrust enforcement against administrative monopoly. The most recent case concerns the Gansu Provincial Department of Transport affiliate, Gansu Provincial Transport Bureau, for its alleged abuse of administrative power to restrict competition. The local transport regulator was found to have appointed China Satellite Navigation and Communication as the sole supplier of vehicle terminals for the platform, and set the price of the terminals. The typical alleged abuses involved in these cases include exclusive dealing in favour of a locally owned enterprise or imposing discriminatory requirements for non-local enterprises.
Continue Reading The establishment of Fair Competition Review in China

By Susan Ning, Huang Jing and Yin Ranran

On January 26, 2010, three GPS operators filed a complaint to the Guangdong Administration for Industry and Commerce ("Guangdong AIC") claiming that the municipal government of Heyuan city, Guangdong province ("Heyuan Government") abused its administrative power in the course of promoting the global positioning system ("GPS") for automobiles and eliminated and restricted competition in this industry.  After investigation, the Guangdong AIC officially proposed to the Guangdong Government asking for rectification of Heyuan Government’s abusive conducts.

According to news reports, after receiving the complaint, the Guangdong AIC initiated investigations and identified the following facts:
 
 Continue Reading First Enforcement Action under Anti-Monopoly Law against Administrative Monopoly