Susan Ning and Ding Liang
On December 16, 2011, the Beijing Lawyers Association organized a seminar inviting Mr. Zhou Zhigao, an official from the Price Supervision, Inspection and Anti-monopoly Bureau (Price Supervision and Anti-monopoly Bureau) of the National Development and Reform Commission (NDRC), to speak on anti-price monopoly legislation and enforcement.
Continue Reading NDRC Doubles Its Antitrust Enforcement Force
By Susan Ning and Ding Liang
On November 14, the National Development and Reform Commission ("NDRC") announced its decision to fine two private pharmaceutical companies nearly RMB 7 million for violating the Anti-monopoly Law (AML) (please see our previous article entitled NDRC Fined Two Pharmaceutical Companies for Abusive Conducts). The NDRC’s news release did not clearly indicate which article(s) of the AML the two companies have violated and the method the NDRC adopted to calculate the fine.
On December 16, Mr. Zhou Zhigao, an official from the NDRC’s Price Supervision, Inspection and Anti-monopoly Bureau discussed the reasoning behind this case in a seminar. According to Mr. Zhou, the two pharmaceutical companies were fined under Article 17(3) of the AML because they abused their dominance by refusing to deal with reserpine manufacturers. He also discussed the method used in that case to calculate the fine.Continue Reading NDRC Official Speaks on the Pharmaceutical Case
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, Ding Liang, Liu Jia and Sun Yiming
On November 14, the National Development and Reform Commission ("NDRC") announced its decision to fine two private pharmaceutical companies nearly RMB 7 million for violating the Anti-monopoly Law ("AML")1. The penalty decision was released right after the NDRC publicly confirmed its investigation over China Telecom and China Union for alleged abuse of dominance in the broadband market. It seemed that the NDRC could not wait to show its determination to enforce the AML with another striking case.Continue Reading NDRC Fined Two Pharmaceutical Companies for Abusive Conducts
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 and Liwei Wang
On September 11, 2011, the name of the previous Guangdong Provincial Price Bureau was officially changed to the PriceSupervision and Inspection and Antitrust Bureau of Guangdong Province (广东省价格监督检查及反垄断局, Guangdong PAB). In connection with the expanded scope of its administrative authority, the agency will recruit additional officials for the purpose of supporting its price inspection and antitrust functions. In addition, the administrative hierarchy of the post-reform Guangdong PAB is elevated, indicating heightened administrative authority.Continue Reading Guangdong Provincial Price Bureau Renamed, Reflecting Strengthened Antitrust Enforcement Authority
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?
By Susan Ning, Liu Jia and Angie Ng
The National Development and Reform Commission (NDRC) has co-organised a conference focusing on price related monopoly agreements with the European Commission Directorate-General for Competition (DG Competition). The conference took place from 1 to 2 June 2011.
Antitrust authorities from the following jurisdictions attended this conference: the European Union, the United States of America, Germany, Spain, Ireland, Australia, Greece. From China, officials from several government agencies attended the conference, including officials from: the Law Committee of the National People’s Congress, the Supreme People’s Court, Legislative Affairs of the State Council, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Commerce, the State of Administration of Industry and Commerce, and pricing authorities based in Beijing, Tianjin and Shanghai. Other attendees include representatives from China Consumers’ Association, China Cleaning Industry Association and academics.Continue Reading NDRC and EU’s DG Competition organize conference on price-related monopoly agreements
By Susan Ning and Yin Ranran
On 2 April 2011, the National Development and Reform Commission (NDRC) hosted a conference with 17 industry associations (relating to businesses selling major consumer products such as household electrical appliances, food, beverages and dairy products) in Beijing. Specifically, the NDRC’s Price Department and Economic and Trade Department convened the conference as an effort to address the recent price hikes in commodities (see our articles entitledPrice Hikes for Washing Powders, Soaps and Shampoos Expected in April and Businesses Should Be Cautious in Making Advance Price Increase Announcement ).
The NDRC hosted conference was also regarded as an effort of NDRC to address China’s increasing consumer price index (CPI) – which is a major indication of the rate of increase of inflation in China. According to data released by the National Bureau of Statistics on April 15, China’s CPI rose 5.4% in March 2011 (from a year ago), hitting a 32-month high.
Continue Reading NDRC Held Talks with 17 Industry Associations
By Susan Ning, Huang Jing and Angie Ng
We understand from press reports that the China Automobile Dealers Association (CADA) has complained that a large automobile manufacturer has allegedly been imposing unreasonable restraints on its distributors, including determining a minimum resale price and allocating territory. There has been some suggestion in the press that the conduct allegedly undertaken by the automobile manufacturer is in breach of the Anti-Monopoly Law (AML).
This article identifies the AML provision governing such vertical restraints; and also outlines how certain vertical restraints in relation to the motor industry are being dealt with in Europe.Continue Reading Complaint re resale price maintenance in the automobile industry