China: China Monthly Antitrust Update - August 2016


NDRC Publishes Announcement Concerning Solicitation of Public Comments for the Guidelines on Determination of Illegal Gains and Amount of Fines Concerning Monopolistic Conduct by Undertakings (Draft for Comments)

On 28 July 2016, the National Development and Reform Commission ("NDRC") published an announcement concerning the solicitation of public comments for the Guidelines on Determination of Illegal Gains and Amount of Fines Concerning Monopolistic Conducts by Undertakings (Draft for Comments) ("Guidelines").Pursuant to the announcement, nearly 200 pieces of comments and suggestions had been raised by units and individuals from foreign antitrust enforcement agencies, domestic and foreign enterprises, industrial associations, research institutes and law firms via emails and letters , which gave positive appraise to the guiding principle, basic framework, writing style and main content of the Guidelines. It is also generally recognized that the enactment of the Guidelines will promote the transparency of administrative antitrust penalty, enhance the legal certainty as well as help the undertakings to establish better antitrust compliance. The relevant parties also provided specific suggestions regarding the concept and methods to determine the illegal gains and fines. NDRC will make thorough study and research on these suggestions and take them into consideration when perfecting the Guidelines.1

State Council Deploys the Tasks Assignment Concerning the Establishment of IPR Powers and Stresses the Perfection of Antitrust System on IPRs

On 18 July, the State Council published the Tasks Assignment Plan Concerning Several Opinions of the State Council on Accelerating the Establishment of Intellectual Property Right Powers under the New Situation ("Assignment Plan"). The Assignment Plan requests relevant departments to make further specification concerning the tasks involving themselves and develop specific measures as soon as possible. Article 36, 37 and 38 in the part of "Regulating the conduct of Intellectual Property Rights Abuse" in the Assignment Plan respectively makes detailed assignment on perfecting the antitrust legal system and supervision system of intellectual property rights("IPRs")and the license policy of SEPs as well as the specific responsible departments.2

NDRC Analyses the Fair Competition Review System: Setting up 18 "Forbidden" Standards for Administrative Power

On 7 July, the State Council Information Office of the People's Republic of China held a press conference. Mr. Hu Zucai, Deputy Director-General of NDRC, introduced the establishment and implementation situation of the Opinions on Establishing the Fair Competition Review System in Market System Development ("Opinions").The Opinions sets up 18 "Forbidden" standards for administrative power with five guarantee measures supporting its implementation, which is an innovative top level design preventing the elimination and restriction of competition by administrative power abuse. Such top level design clarifies the boundaries between government and market and will also benefit the development of new business forms and models.3


CEB of SAIC Meets a Delegation from theState Grid

On 25 July 2016, the Anti-Monopoly and Anti-Unfair Competition Enforcement Bureau ("CEB") of the State Administration for Industry and Commerce ("SAIC") met a delegation, led by Mr. Han Jun, Deputy General-Manager of the State Grid Corporation of China ("State Grid"). The CEB of SAIC introduced the enforcement situation against public enterprises which restricting competition and conducting monopolistic conduct implemented by Administrations for Industry and Commerce ("AICs"). The State Grid introduced the development situation in electricity supply industry. They also exchanged opinions on existing problems which are suspected of monopoly and anti-unfair competition in electricity supply industry. The State Grid expressed that they will explicitly require that anyone in the industry shall strictly regulate its business operation in accordance with the relevant laws and regulations, fully support the special enforcement activity conducted by SAIC and proactively correct and rectify any irregularities.4

Guangdong DRC Holds Law Enforcement Training Program of Special Inspection Activity on Drug Price

In order to enhance the administrative law enforcement ability and relevant professional skills of the price-related enforcers in Guangdong Province, guarantee the successful development of Guangdong special inspection activity on drug price, PSIAM Bunder Guangdong Development and Reform Commission ("DRC") held a law enforcement training program regarding the special inspection activity on drug price from 18 to 20 July. The leaders and key personnel from relevant price supervision and inspection departments attended the training program. This training program timely conveyed the spirit of the national special inspection activity on drug price and shared the knowledge on antitrust enforcement of drug price and the price supervision in drug market, etc..5

CEB of SAIC Sends Personnel to Attend the Antitrust Cases Seminar Held by Hunan AIC

On 15 July, CEB of SAIC sent personnel to attend the antitrust cases seminar held by Hunan Administration of Industry and Commerce ("Hunan AIC") in Changsha City. The relevant personnel from Hunan AIC and the experts and scholars from Hunan University and Changsha University of Science and Technology studied and discussed the legal issues involved in the antitrust cases investigated by Hunan AIC.6

SAIC Deploys the Antitrust Enforcement Focus of the Second Half of 2016

On 15 July, SAIC held "Symposium of Nation-wide AICs and Market Supervision Departments". During the symposium, SAIC expressed that strengthening the antitrust and anti-unfair competition enforcement, which means that deepening the special action concerning rectifying the public enterprises for their conduct of restricting competition and monopolistic conduct, promoting the rectification of public enterprises. Proactively investigating and punishing the conduct of restricting and eliminating competition existed in industries that closely related to people's livelihood, breaking the district blockand industry block, as well as promoting the study of issues on antitrust and anti-unfair competition in new industries and new areas.7

Investment Promotion Agency of MOFCOM Convenes a Conference Focusing on Antitrust Issues in Auto Industry

On 13 July, the Second Quarter Conference of Investment Promotion Committee of Auto Industry under the Investment Promotion Agency of Ministry of Commerce ("MOFCOM")in 2016 was held in Beijing. 40 representatives, including leaders and experts from NDRC and China Insurance Regulatory Commission ("CIRC"), representatives from auto enterprises, such as GM, Jaguar Land Rover, Volkswagen, etc. and institutes, for example, China Automotive Technology & Research Center, attended the conference. Mr. Lu Yanchun, Deputy Director-General of Price Supervision and Inspection and Anti-Monopoly Bureau ("PSIAMB") of NDRC, and Ms. Xuan Ming, the Director of the Second Division of Property Insurance Regulatory Department under CIRC, respectively introduced and analyzed the issues of "Requirement and Influence of Antitrust Laws and Regulations on Auto Industry" and "Reform and Supervision Work of Commercial Auto Insurance in China" and exchanged opinions with representatives.8

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