ANTITRUST
Legislation
The Amendments to the Anti-monopoly Law Is to Be Reviewed Between 19 October and 23 October
On 28 September 2021, the 102nd Chairman meeting of the Standing Committee on 13th National People's Congress was held in Beijing. As decided at the meeting, the 31st session of the top legislature will be held between 19 October and 23 October. The meeting will review a motion submitted by the State Council on a draft amendment to the Anti-Monopoly Law ("AML").1
The Code of Ethics for New Generation Artificial Intelligence Proposes to Maintain Orderly Competition in the Market
On 25 September, the National Professional Committee on Governance of New Generation Artificial Intelligence released the Code of Ethics for New Generation Artificial Intelligence, which mentions that behaviours including data monopoly and platform monopoly that may destroy the orderly competition in the market shall be prohibited.2
Jiangsu Province Releases "Anti-Monopoly Compliance Guidelines for Operators in Jiangsu"
On 22 September, the Administration for Market Regulation of Jiangsu Province released the Anti-monopoly Compliance Guidelines for Operators in Jiangsu, which aims to encourage operators to cultivate a compliance culture of fair competition, guide operators to establish an anti-monopoly compliance system, improve the level of anti-monopoly compliance, promote the sustainable and healthy development of operators, and maintain a fair competition order in the market.3
The Outline of Building a Powerful Intellectual Property Nation Proposes to Improve the Anti-Monopoly Laws and Regulations Related to Intellectual Property and the Fair Competition Review System
China's CPC Central Committee and State Council have recently published the Outline of Building a Powerful Intellectual Property Nation (2021-2035), which proposes to improve the legal system regulating the abuse of intellectual property rights as well as legislation in areas such as anti-monopoly and anti-unfair competition related to intellectual property rights, and establish a sound system for the legality of intellectual property policies and fair competition review.4
Hainan Free Trade Port Publishes the Third Party Assessment Measures for Fair Competition Review (for Trial Implementation)
On 10 September, Hainan Free Trade Port published the Notice of the Anti-Monopoly Committee Office in China (Hainan) Pilot Free Trade Port on the Issuance of Third-Party Assessment Measures for Fair Competition Review (for Trial Implementation), which aims to build a high-level Hainan Free Trade Port and promote the business environment. It proposes to strengthen the basic status of competition policy and establish a third party assessment mechanism for fair competition review.5
Authorities
The Central Commission for Discipline Inspection Comments on the Case of Administrative Monopoly: Forcible Enactment Is Capricious Use of Power
Recently, the market regulation department of Ningxia Hui Autonomous Region investigated and dealt with the case involving the emergency management department of Shizuishan using its administrative power in handling safety production licenses to forcefully designate specific insurance brokers. On 26 September 2021, the Central Commission for Discipline Inspection launched a sharp commentary on this case, pointing out that fair competition is a basic principle of market economy, and using administrative power to forcefully interfere with the free competition of market subjects will worsen the business environment.6
Jiangxi Provincial Department of Finance Issues 160,000 Yuan to Subsidize the Antitrust Work
On 10 September, the Department of Finance of Jiangxi Province issued an anti-monopoly work subsidy of RMB 160,000 to support the investigation of antitrust cases to promote the local anti-monopoly work.7
Compilation on Anti-monopoly Laws of Countries Related to the Belt and Road Has Been Published and Released
On 6 September, the translation of Compilation on Anti-monopoly Laws of Countries Related to the Belt and Road organized by the Anti-monopoly Bureau of the State Administration for Market Regulation ("SAMR"), was published by the Legal Publishing House and officially released. The Compilation systematically introduces the antitrust legislation and institutional settings of the countries along the route, which will also play a positive role in further promoting the exchange and cooperation between China and other countries in the field of antitrust.8
The SAMR Releases 2020 Antitrust Enforcement Report and 10 Typical Cases of Antitrust Enforcement
On 3 September, the SAMR released 2020 Antitrust Enforcement Report and 10 Typical Cases of Antitrust Enforcement. The report highlights the achievements of the SAMR regarding regulating the order of competition in the platform economy and deepening anti-monopoly enforcement in the livelihood sector in 2020.9
Public Enforcement
Bulls Is Fined 290 Million Yuan for Engaging in Resale Price Maintenance
On 27 September 2021, the SAMR issued a penalty decision by the Zhejiang Administration for Market Regulation in relation to the monopoly agreement of Bull Group Corporation ("Bull Group"), fining the Bull Group RMB 294.81 million. The investigation found that from 2014 to 2020, the party concerned had entered into and implemented monopoly agreements with counterparties (dealers) to fix and limit prices in the sales channels of power connection and electricity extension products nationwide, which excluded and restricted market competition and harmed consumers' welfare.10
Anhui AMR Corrects the Anhui Provincial Working Committee on Aging's Behaviour Involving Abuse of Administrative Power to Exclude and Restrict Competition
On 15 September, the Anhui Administration for Market Regulation ("Anhui AMR") released the results of an investigation into the alleged abuse of administrative power by the Office of the Anhui Provincial Working Committee on Aging to exclude and restrict competition and corrected the latter's behaviour involving abuse of administrative power by designating an insurance company as responsible for providing elderly insurance protection products and services.11
Shanxi AMR Corrects Abuse of Administrative Power by Relevant Departments of Jinzhong Municipal People's Government to Exclude and Restrict Competition
On 15 September, the Shanxi Administration for Market Regulation ("Shanxi AMR") released the results of the investigation into the abuse of administrative power by the Office of the People's Government in Jinzhong and other departments to exclude and restrict competition. The behaviours including issuing documents and adding restrictive conditions to restrict the types of cruising cars conducted by relevant departments were corrected according to the law.12
Director of the SAMR Proposes to Strengthen Competition Regulation in a Strong and Orderly Manner
On 6 September, Zhang Gong, director of the SAMR, said at a press conference of the State Information Office that the market regulator will strengthen competition regulation in a strong and orderly manner, resolutely oppose monopoly and prevent disorderly expansion of capital. The regulator will also focus on regulating the order of competition in the platform economy and create a fair, efficient and orderly market competition environment.13
Merger Control
SAMR Releases 64 Simple Cases for Merger Control Review in September
Up to 30 September 2021, the SAMR has released 64 simple cases in September on its website.14
Courts Litigation
The SPC Rejects Apple's Jurisdictional Appeal in an Anti-Monopoly Case
On 27 September 2021, the Supreme People's Court ("SPC") of China has dismissed an appeal filed by Apple Computer Trading (Shanghai) regarding jurisdiction in an antitrust lawsuit. The plaintiff of the case has claimed that the defendants abused their dominant position in the market for the app sales platform in smart terminals using the IOS mobile operating system in mainland China. The ruling stated that "the plaintiff sued to claim that Apple abused its dominant market position to have the effect of excluding and restricting competition in the Chinese market and harming the rights and interests of consumers, over which the Chinese courts have jurisdiction". The second instance ruled that the appeal was rejected and the original decision was upheld.15
The SPC Published 10 Typical Antitrust and Anti-Unfair Competition Cases
On 27 September, the SPC published 10 typical antitrust and anti-unfair competition cases. The SPC also pointed out that it was pushing forward with the formulation of a second judicial interpretation of the Anti-monopoly Law and would launch a consultation to the public in due course.16
The SPC's Final Ruling in the OPPO v. SHARP Case Clarified That China Has Jurisdiction over Global Rates of SEPs
According to a notice on OPPO's official website published on 2 September, the SPC final ruling in the OPPO v. SHARP case has clarifies that China has jurisdiction over global rates of SEPs. In this decision, the Intellectual Property Court of the SPC clarified the standard of "proper connection", holding that the case had a proper connection with China and that the Chinese courts had jurisdiction over this case, then the decision denied SHARP' s appeal.17
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Footnotes
1. https://mp.weixin.qq.com/s/ircMSqo51Rx4ozViNkXQ0A
2. http://www.most.gov.cn/kjbgz/202109/t20210926_177063.html
3. http://scjgj.jiangsu.gov.cn/art/2021/9/22/art_78968_10023737.html
4. http://www.news.cn/2021-09/23/c_1127890442.htm
5. http://www.hnftp.gov.cn/zcfg/zcwj/hnzc/202109/P020210910423797165613.pdf
6. https://www.ccdi.gov.cn/pl/202109/t20210926_251238.html
7. http://jxf.jiangxi.gov.cn/art/2021/9/10/art_39232_3578822.html
8. http://www.samr.gov.cn/fldj/sjdt/gzdt/202109/t20210906_334442.html
9. http://www.gov.cn/xinwen/2021-09/24/5639102/files/77006c5bccc04555aa05f30c9a296267.pdf
10. http://www.samr.gov.cn/fldj/tzgg/xzcf/202109/t20210927_335175.html
11. http://amr.ah.gov.cn/xwdt/gsgg/146065171.html
12. http://www.samr.gov.cn/fldj/tzgg/qlpc/202109/t20210915_334781.html
13. http://www.moj.gov.cn/jgsz/gjjwzsfbjjz/zyzsfbjjzyw/202109/t20210913_437544.html
14. http://www.samr.gov.cn/fldj/ajgs/jzjyajgs/index.html
15. https://mp.weixin.qq.com/s/9O8HY4q8JJsYpHX8tSnsZA?scene=25#wechat_redirect
16. http://www.court.gov.cn/zixun-xiangqing-324721.html
17. https://www.oppo.com/cn/newsroom/patent/463/
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