China Monthly Antitrust Update: March 2023

Authorities

Gansu AMR: Number of Actions Implemented Based on Laws to Combat Anti-monopoly Violations Regarding People’s Livelihood and Business Environment since 2022

On February 23, 2023, Gansu Administration for Market Regulation (“AMR”) informed that: since 2022, the market regulation system in Gansu has implemented key rectification in the field of market regulation in accordance with the law and solidly promoted the special action to stop the abuse of administrative power to exclude and restrict competition, and special action targeting illegal fees charged on enterprises for “relief and reduction of burden”, so as to focus on the people’s livelihood, business environment in the field of anti-monopoly violations to investigate. 

Guangxi Province Deploys 2023 Special Action to Strengthen “Break Wall” for Anti-Monopoly Enforcement in Field of People’s Livelihood

On February 20, Guangxi AMR focused on the serious problems in the field of people’s livelihood, which were strongly reflected by the people and seriously excluded competition, and deployed to carry out a “Break Wall” special action to strengthen anti-monopoly enforcement in the field of people’s livelihood in the whole region. The action focuses on investigating and regulating three types of monopolistic acts, intending to form an effective closed loop to prevent and stop administrative monopolies and promote the construction of a unified national market. 

Hunan AMR: Hunan Ranked First in China in Number of Administrative Monopoly Cases Investigated and Regulated Last Year

On February 15, Hunan AMR revealed that Hunan AMR investigated and handled 13 administrative monopoly cases in 2022, 12 of which were selected as national typical cases, ranking first in the country in terms of the number of cases regulated, effectively maintaining a fair, competitive environment in the market, and helping to build a unified national market. 

National Conference on Anti-Monopoly Work of Market Administration System: Summary of Work in 2022 and Key Tasks in 2023

On February 9, the national anti-monopoly work conference of market administration system and the deployment of special anti-monopoly enforcement actions in people’s livelihood were held in Qingdao, Shandong Province. The meeting summarized the anti-monopoly work in 2022 and the past five years planned the future anti-monopoly work spirits and clarified the key tasks in 2023.  

Public Enforcement

Jiangsu AMR: Nanjing Zhongran Urban Fuel Development Co., Ltd. Abuses its Dominant Market Position by Tying Gas Products and Fined over 50 million RMB

On February 23, 2023, Jiangsu AMR stated that Nanjing Zhongran Urban Fuel Development Co., Ltd. made the purchase of gas insurance, gas alarms, gas appliances, and metal corrugated pipes as a necessary part of gas entry for developers of new residential communities, and compelled developers to purchase them. If the developer objects, Nanjing Zhongran will also force developers to accept by delaying the progress of the project and refusing to supply gas. Moreover, Nanjing Zhongran also charged developers unreasonable installation fees for over-supporting scope works and non-residential gas pipeline works. In response to the above, the Jiangsu AMR imposed an administrative fine on the company and confiscated the illegal income totaling over 50 million RMB. 

Northeast Pharmaceutical Group Co., Ltd. Fined 133 Million RMB for Abusing its Market Position by Selling Levocarnitine API at High Prices

On 20 February, Liaoning AMR announced that in July 2019, the Liaoning AMR started a case against Northeast Pharmaceutical Group Co., Ltd. for alleged abuse of its dominant market position and made an administrative penalty decision on the case in accordance with the law in January 2023, and Northeast Pharmaceutical Group Co., Ltd. was fined 133 million RMB. 

Guigang AMR of Guangxi Holds Anti-Monopoly Conference on Fireworks Industry

On February 17, the Guigang AMR of Guangxi held an anti-monopoly conference on the city’s fireworks industry to interview the heads of fireworks wholesale enterprises and some retailers in 3 districts, including Gangbei, Gangnan, and Qiantang. 

SAMR Issues Administrative Penalty Decision in Case of Abusing Dominant Market Position by Chongqing Yongkang Gas Co., Ltd.

On February 1, the State Administration of Market Regulation (“SAMR”) issued an announcement regarding an administrative penalty case. The case was handled by the Chongqing AMR. The Chongqing AMR opened an investigation into the alleged abuse of its dominant market position, i.e., , forcing users to purchase insurance, alarms and gas stoves, by Chongqing Yongkang Gas Co., Ltd in August 2021 and issued an administrative penalty decision on the case in December 2022 in accordance with the law.

Courts Litigation

Xining Intermediate People’s Court of Qinghai Province Held Hearing on Monopoly Dispute in Gas Industry

On the afternoon of February 16, 2023, the Xining Intermediate People’s Court in Qinghai Province held a hearing on the case of monopoly dispute between Minhe Branch of Haidong Huaze Gas Appliances Trading Co., Ltd. and Qinghai Province Minhe Chuanzhong Oil & Gas Co., Ltd. Although the defendant did not object to the jurisdiction, on June 29, 2022, the People’s Court of Minhe Hui & Tujia Autonomous County, Qinghai Province, which initially accepted the case, transferred the case to the Xining Intermediate People’s Court of Qinghai Province on its own initiative based on the provisions of Supreme People’s Court on Several Issues Relating to the Application of Law in the Trial of Civil Dispute Cases Arising from Monopolies. 

Gansu Province’s First Monopoly Administrative Case Goes to Trial

On February 8, the Lanzhou Intellectual Property Court held a public hearing on the case between a Lanzhou taxi company and Gansu AMR for anti-monopoly administrative handling, which was the first monopoly administrative case in Gansu Province and the first intellectual property administrative case heard by the Lanzhou Intellectual Property Court since the implementation of the Notice on the Implementation Plan for Promoting the Trial of Intellectual Property Civil, Administrative and Criminal Cases in the Provincial Courts. 

SPC Made Final Judgment in Anti-monopoly Lawsuit Related to Fees Charged by Real Estate Agency

On February 7, the Supreme People’s Court (“SPC”) made a final judgment in an anti-monopoly lawsuit related to the fees charged by a real estate agent. The plaintiff in this case, Ms. Wang, took Beijing Home Link Real Estate Broker Co., Ltd. (“Home link”) to court in 2017 for abuse of dominant market position. In June 2020, the Beijing Intellectual Property Court ruled in first instance to dismiss all of her claims. After the plaintiff appealed against the decision, the SPC recently pronounced that the evidence available in the case did not prove that Home Link had committed an abusive act, so the first instance decision was flawed, but the result was correct and should be upheld. 

Academia

Professor Wang Jian Elected as President of Asian Competition Law Association

On February 22, 2023, Professor Wang Jian, currently the Dean of the School of Law and Politics at Zhejiang Sci-Tech University, was recently appointed as the new President of the Asian Competition Law Association (“ACA”). Dean Wang Jian was one of the earliest participants in the ACA and has been one of the founders of its development path, having delivered numerous speeches at ACA conferences and participated actively in discussions on the future of the ACA. 

Xu Rongrong, Partner of JunHe LLP Honored with Co-chair of IBA Antitrust Section

As reported on 21 February, the partner of JunHe LLP, Xu Rongrong will become co-chair of the International Bar Association’s Antitrust Section (“IBA Antitrust Section”) as of 1 January 2023. She will be joined by Samantha Mobley, a partner at Baker McKenzie, as co-chair.

17th International Conference on Competition and Regulation to be held in Rhodes, Greece, at End of June 2023

As reported on February 9, the 17th International Conference on Competition and Regulation, organized by the Competition and Regulation European Summer School, will be held in Rhodes, Greece, at the end of June 2023. The theme topic of the conference is “Advances in the Analysis of Competition Policy and Regulation”. Participants will share and exchange views on cutting-edge competition issues, such as the challenges in the implementation of the Digital Markets Act. 

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

Editor: IPR Daily-Ann