China Monthly Antitrust Update: October 2023

Legislation

Promoting the Development of Private Economy: 22 Measures Issued by the State Administration for Market Regulation, 6 Concerning Anti-Monopoly

On September 22, 2023, the website of the State Administration for Market Regulation (“SAMR”) issued a news release, releasing Measures of Administration for Market Regulation to Promote the Development of Private Economy (“Measures”). Since the introduction of the Opinions of the CPC Central Committee and the State Council on Promoting the Development of the Private Economy on July 14. The release of the Measures is to implement the decision and deployment of CPC Central Committee and the State Council, which is of great significance to boost confidence in the development of the private economy and regulate and guide the healthy development of private capital in accordance with the law. 

Shaanxi Province Anti-monopoly Compliance Guidelines for Building Materials Industry Issued 

On September 20, in accordance with the Anti-Monopoly Law and law enforcement and regulatory practice of Shaanxi Province, Shaanxi Administration for Market Regulation (“AMR”) formulated and published Shaanxi Province Anti-monopoly Compliance Guidelines for Building Materials Industry.

Anti-monopoly Compliance Guidelines for Concentration of Undertakings Released: Case Notes Introduced for the First Time, Compliance Incentives Clarified

On September 11, SAMR officially issued the Anti-monopoly Compliance Guidelines for Concentration of Undertakings. This is the first compliance guidance document issued by the anti-monopoly law enforcement agency of the State Council in the field of regulation of concentration of undertakings since the implementation of the Anti-Monopoly Law in 2008, case notes are introduced for the first time, and compliance incentives are clarified.

Heilongjiang Issues Implementation Opinions on Further Standardizing Real Estate Brokerage Services: Abusing Dominant Market Position to Charge Unfairly High Prices for Brokerage Services Prohibited

Recently, the Department of Housing and Urban-rural Development and AMR of Heilongjiang Province jointly issued the Implementation Opinions on Further Standardizing Real Estate Brokerage Services（“Opinions”）. Real estate brokery institutions shall not abuse their dominant market position to charge unfairly high prices for brokerage services, according to the Opinions.

Authorities

Cooperation Agreement on Promoting the Integration of Fair Competition Policies Signed by Shanghai, Jiangsu, Zhejiang and Anhui

On September 12, the AMRs of Shanghai, Jiangsu, Zhejiang and Anhui provinces jointly signed the Cooperation Agreement on Promoting the Integration of Fair Competition Policies in Yangtze River Delta at the special forum on “Promoting Regional Cooperation on Competition Policies to Create a First-class Business Environment”.

Shanghai and Fujian Join Hands on Setting Up the First Antitrust Review and Compliance Counseling Center in Xiamen

On September 7, representatives of Shanghai AMR, Fujian AMR, Xiamen Construction Leading Group Office of Maritime Silk Road Central Legal District, Xiamen AMR, Xiamen Siming District People's Government signed a cooperation framework agreement at the Third Forum of Maritime Silk Road Central Legal District, officially launched the construction project of China’s first antitrust review and compliance counseling center.

Beijing AMR Strengthens Risk Warning for Concentration of Undertakings

On September 7, Beijing AMR issued a news that it had set up a risk warning reminder on the Beijing enterprise service platform, reminding enterprises to notify in time when meets the notification threshold of concentration of undertakings, and warning enterprises of the legal liability that may arise if they fail to notify according to law.

Deputy Director of SAMR: To Create a Fair and Competitive Market Environment for The High-quality Development of Private Enterprises

On September 4, the State Council Information Office held a press conference to introduce information on promoting the high-quality development of the private economy. Liu Jun, Deputy Director of SAMR, attended the conference to introduce a series of measures taken by SAMR to promote the development of individually-owned business and small and micro businesses, fully implement the fair competition policy, strengthen the regulation and enforcement of anti-monopoly and anti-unfair competition, and increase the protection of intellectual property rights.

Public Enforcement

SAMR Announces Typical Cases of Internet-related Unfair Competition Behaviors: Including Data Crawling and Click Farming Cases

On September 26, SAMR announced nine cases of internet-related unfair competition behaviors, including data crawling, click farming and other behaviors. So far this year, the Market Regulatory Departments around China have filed and investigated 6,870 cases of various types of unfair competition behaviors, including 1,209 cases of internet-related unfair competition behaviors.

SAMR Notifies the Fair Competition Review and Supervision Rectification Cases of 2022

On September 19, SAMR released news that according to the 2022 supervision and inspection plan arrangement of central Party and State institutions, Random inspection of 25 provincial people’s governments’ (Inner Mongolia, Liaoning, Shanghai, Anhui, Chongqing, Shaanxi and other 6 provinces due to participate in the 2022 national level fair competition review third-party evaluation work was not included in the scope of supervision and inspection) 195 key inspection units’ 968 policies and measures concerning the economic activities of the business entities. After multiple rounds of review, the relevant policies and measures of 18 provinces (autonomous regions and municipalities directly under the central government) were found violate the fair competition review standards stipulated in the Implementing Rules for the Fair Competition Review System in terms of market access and withdrawal, free flow of goods and factors, and impact on production and business costs, thus hindering the unified market and fair competition. All localities and departments attach great importance to the problems found in the inspection and expedite the revision or repeal of relevant documents. As of July 2023, the relevant rectification work has been completed.

SAMR Issues Administrative Penalty Decisions of Three Monopoly Agreement Cases, Weiqi Association, Building Materials Enterprises and Bottled Liquefied Gas Enterprises Involved 

On September 12, SAMR issued administrative punishment decisions of three monopoly agreement cases involving Beijing Weiqi Association and its member units, four building materials enterprises in Guizhou Province and 10 bottled liquefied gas enterprises in Nanjing.

SAMR Issues 10 Typical Cases of Special Anti-Monopoly Enforcement Actions in Field of People’s Livelihood: Pig Breeding Enterprises’ No-Poach Agreement Case Included 

On September 12, SAMR issued the second batch of typical cases of special anti-monopoly enforcement actions in field of people’s livelihood in 2023, including ten cases such as regulatory talk with four pig breeding enterprises to prevent monopoly risks.

Suzhou City, Jiangsu Province Conducts Graded and Classified Fair Competition Review Spot Checks

On September 4, SAMR issued a news release that the Fair Competition Review Joint Conference Office of Suzhou City, Jiangsu Province, carried out a graded and classified fair competition review spot checks of government offices and member units at the municipal and city levels.

[1]https://www.samr.gov.cn/xw/zj/art/2023/art_040f27f511464513bdb1867e51a727c4.html

[2]https://mp.weixin.qq.com/s/eacc7TyytLMjqOXjC8d0gg

[3]https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldj/art/2023/art_b463be894b4d40d487d8d099a4df60f5.html

[4]https://mp.weixin.qq.com/s/IzzM73Rob1WJoR8byeSR9w

[5]http://scjgj.jiangsu.gov.cn/art/2023/9/14/art_70154_11014443.html

[6]https://mp.weixin.qq.com/s/IMnPDD216S3su2TkrpnXrQ

[7]https://mp.weixin.qq.com/s/SUg0P4XMdULrG3MiSQKHoA

[8]http://www.scio.gov.cn/live/2023/32562/tw/

[9]https://mp.weixin.qq.com/s/Jy90L_PXIUhS99SV4W9ZRA

[10]https://www.samr.gov.cn/xw/zj/art/2023/art_c7ebee1b4be944848de7c8cc186e6cca.html

[11]https://mp.weixin.qq.com/s/pP6ljSc8Y3xd_A4jcVfclw

[12]https://www.samr.gov.cn/xw/zj/art/2023/art_083fcd6fdfab4b469c7dacc806f51f65.html

[13]https://www.samr.gov.cn/zt/qhfldzf/art/2023/art_21d142498f054bb58b80af6647d7278f.html

[14]https://www.samr.gov.cn/fldes/tzgg/ftj/art/2023/art_90a71deadd224689b026920807c0389c.html

[15]https://www.court.gov.cn/zixun/xiangqing/411742.html

[16]https://mp.weixin.qq.com/s/Gjm6nBwQet2ZFNHi1zNBmQ

[17]https://mp.weixin.qq.com/s/p4mPuUAsToTiT0pKvOtE9w

Source: Beijing Dacheng Law Offices LLP - Jet Deng and Ken Dai

Editor: IPR Daily-Horace