By Susan Ning, Wu Han, and Sun Yiming

On 13 March, Mr. Zhang Guangyuan, Deputy Director of the Anti-monopoly Bureau of the National Development and Reform Commission (NDRC) spoke on the latest development of NDRC’s antitrust investigation on China Telecom and China Unicom. Mr.Zhang said that the two companies have so far completed a 100G bandwidth expansion and committed to further reduce the internet access service charges. The Anti-monopoly Bureau of the NDRC will continue to press for rectification and reform of the two companies.

This investigation was initiated last April, targeting at China Telecom and China Unicom for their alleged abuse of market dominance in the Internet access market by administering price discrimination against different Internet service providers (ISPs)1. On December 2, 2011, the two companies publicized statement on their websites saying they have submitted applications to the NRDC for suspension of the antitrust investigation and decided to correct their misconduct, but NDRC demanded more concrete pledges.

Continue Reading Latest Development re NDRC’s Antitrust Investigation against China Telecom

By Susan Ning, Sun Yiming, Liu Jia and Yin Ranran

On December 13, it was reported that the National Development and Reform Commission (NDRC) asked China Telecom to submit more detailed "rectification proposal" in relation to its pledge for suspension of antitrust probe1.   Earlier on December 2, China Telecom and China Unicom announced that they have applied to the NDRC for suspension of its antitrust investigation into their internet access pricing practices, by promising to adjust the internet access prices and overhaul their broadband services (see our article entitled "China Telecom and China Unicom Seek to Settle Antitrust Probe").

Continue Reading NDRC Demands More Concrete Pledges from China Telecom

By Susan Ning, Sun Yiming, Liu Jia and Yin Ranran

On 2 December 2011, China Telecom and China Unicom announced that they have applied to the National Development and Reform Commission (NDRC) for suspension of its antitrust investigation into their internet access pricing practices, by promising to adjust the internet access prices and overhaul their broadband services.

According to their announcements 1, China Telecom and China Unicom stated that they have proactively cooperated with the NDRC’s investigation and have engaged in "self-evaluation" of the challenged pricing practices.  Both companies acknowledged "room for improvement" for their interconnection services and pricing practices.

Continue Reading China Telecom and China Unicom Seek to Settle Antitrust Probe

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

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.
 

Continue Reading Chinese Antitrust Enforcement Agencies Ready to Show Teeth to Large State-owned Enterprises?