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By Susan Ning, Sun Yiming and Liu Jia

On November 9, 2011, an earlier rumor indicating that China Telecom is under antitrust investigation for alleged abuse of dominance in the broadband market was confirmed by the National Development and Reform Commission ("NDRC"), the authority in charge of price-related breaches of the Anti-Monopoly Law ("AML").  This is by  far the first time for China’s antitrust enforcement authority to conduct an antitrust investigation on large state-owned companies.  It is speculated that billions of antitrust fines could possibly be levied if the violation is established.

This article is a follow-up of our previous article entitled "Chinese Antitrust Enforcement Agencies Ready to Show Teeth to Large State-owned Enterprises? ", which includes a comprehensive analysis of the claimed violation.…

Continue Reading Earlier Rumor Confirmed: China Telecom and China Unicom under Antitrust Investigation

On 31 October 2011, the Ministry of Commerce (MOFCOM) publicly announced the eighth conditional merger clearance since the enactment of the Anti-monopoly Law (AML) in 2008. According to its announcement, MOFCOM cleared the proposed acquisition by Alpha Private Equity Fund V (Alpha V) of Savio group (an Italia based textile machinery producer, Savio) with four conditions. This is also the second conditional merger clearance this year.
To read the full article, please click here.
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Continue Reading MOFCOM’s 8th Conditional Clearance – Alpha V/Savio Deal

By Susan Ning and Liu Jia

On 31 October 2011, the Ministry of Commerce (MOFCOM) publicly announced the eighth conditional merger clearance since the enactment of the Anti-monopoly Law (AML) in 2008.  According to its announcement1 , the review process lasted for 3.5 months starting from 14 July 2011 when the notification was submitted to MOFCOM. 

Set forth below is a chart outlining the review process.…

Continue Reading Alpha V/Savio Deal – A Procedural Overview of MOFCOM’s Decision-making Process

By Susan Ning, Sun Yiming and Liu Jia

Most recently, the hottest  topic on China’s Anti-monopoly Law (AML) is a piece of news spreading on the internet, indicating that China Telecom, one of China’s largest state-owned enterprises is under antitrust investigation conducted by a "relevant" competition authority for its suspected abuse of dominance in broadband market. If the abuse is successfully established, China Telecom may face huge fines under the AML. The news is also quoted by Xinhuanet.com, an authoritative website run by the government. However there has been no formal response from China Telecom or any competition authorities so far in this respect.

This article outlines details to do with China Telecom’s conduct and examines whether or to what extent such conduct would be considered as an abuse of dominance and thus in violation of the AML.
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Continue Reading Chinese Antitrust Enforcement Agencies Ready to Show Teeth to Large State-owned Enterprises?

By Susan Ning, Liu Jia and Yin Ranran
The QQ / 360 battle broken out towards the end of 2010 (see our article entitled "The QQ / 360 Disputes – Who, What, Where, When and Preliminary Antitrust Analysis") has stirred lasting and heated discussions about anti-monopoly issues in the emerging Internet industry in China. 
 

About one month ago, Renmin University of China organized the thirteenth Anti-Monopoly Law Summit Forum, which was focused on discussion of fair competition in the Internet industry of China and protection of netizens’ interests.  Officials from various government agencies, such as the Law Committee of the National People’s Congress, Legislative Affairs of the State Council, the Ministry of Industry and Information Technology ("MIIT"), the State of Administration for Industry and Commerce ("SAIC’), the Ministry of Commerce, and the National Development and Reform Commission, as well as judges from the Supreme People’s Court participated in the forum..…

Continue Reading Potential Monopoly In China’s Internet Industry Caught Attention of Chinese Competition Authorities

By Susan Ning, Liu Jia and Angie Ng

In March every year, lawmakers and political advisers from the National People’s Congress (NPC) (Chinas equivalent of Parliament) and the Chinese People’s Political Consultative Committee (CPPCC) (China’s top advisory body) conduct sessions in Beijing to take stock of social, legal and economic issues in China for the preceding year; and discuss objectives (in relation to the same issues) for the year going forward1.    These sessions are often referred to as the "two sessions".

Two statements which have arisen during these two sessions; are of particular interest (from an antitrust law perspective):
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Continue Reading The annual “two sessions” and antitrust law noises

By Susan Ning, Liu Jia and Angie Ng

We understand from media reports that on 18 February 2011, Hudong1  (a Chinese internet search engine) made an Anti-Monopoly Law (AML) complaint to the State Administration for Industry and Commerce (SAIC) against Baidu2  (arguably the most often or commonly used internet search engine in China; often referred to as China’s equivalent of "Google"). …

Continue Reading Wiki-Hudong against Wiki-Baidu – an abuse of dominance?

By Xu Ping, Leading partner of King & Wood’s Corporate Group

On February 3, 2011, the General Office of the PRC State Council issued the Notice Regarding the Establishment of National Security Review Mechanism for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (“国务院办公厅关于建立外国投资者并购境内企业安全审查制度的通知”) (the "Notice"), which will take effect 30 days after its promulgation. The Notice represents another major step that the Chinese government has taken in recent years in the area of regulating mergers and acquisitions (M&A) of domestic companies by foreign investors in China.…

Continue Reading China Issues Rules on National Security Review for M&A Transactions

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?