China Monthly Antitrust Update: April 2023

Legislation

SAMR Issues Four Supporting Regulations of the New Anti-monopoly Law

On March 24, 2023, the State Administration for Market Regulation (“SAMR”) issued four supporting regulations of the Anti-monopoly Law, namely the Provisions on Curbing the Abuse of Administrative Power to Exclude or Restrict Competition, the Provisions on Prohibition of Monopoly Agreements, the Provisions on Prohibition of Abuse of Market Dominance, and the Provisions on the Review of Concentrations of Undertakings, which will come into effect on April 15, 2023. [1]

Authorities

Framework Agreement for Cooperation in Antitrust Pilot Review of Concentrations of Undertakings Signed by Eight Provinces and Municipalities

On March 17, 2023, Chongqing Administration for Market Regulation, together with Administrations for Market Regulation of Henan, Hubei, Hunan, Sichuan, Guizhou, Yunnan and Tibet, signed the Framework Agreement for Cooperation in Antitrust Pilot Review of Concentrations of Undertakings. [2]

Beijing Administration for Market Regulation: Further Implementing the Fair Competition Policies and Intensifying Antitrust Enforcement in 2023

On March 21, Beijing Administration for Market Regulation issued the 2022 Annual Report of Beijing Administration for Market Regulation on Building of A Government Ruled by Law. The report proposes to further implement fair competition policies, continuously strengthens the fundamental position of competition policies, effectively conducts fair competition reviews, and intensifies anti-monopoly law enforcement in 2023. [3]

SAMR 2022 Annual Report on Building of Government Ruled by Law: Improving Anti-monopoly Institutional Arrangements and Effectively Carrying out Antitrust Enforcement

On March 13, SAMR released the 2022 Annual Report on Building of Government Ruled by Law, which reviews the achievements made by SAMR in improving anti-monopoly institutional arrangements and promoting the in-depth implementation of fair competition policies in 2022. [4]

Director of SAMR: Promoting Fair Competition with Digital Economy and Ensuring People’s Livelihood as Priorities

At the second session of the “Minister’s Channel” of the First Session of the Fourteenth National People’s Congress held on March 7, Luo Wen, Director of SAMR, responded to concerns about current hot topics in the market regulation field. Luo Wen said that to continuously optimize the market environment for fair competition, it is necessary to lay a solid foundation of rule of law for fair competition, enhance the level of normalized regulation, break local protectionism and administrative monopoly, and create a good atmosphere for fair competition. [5]

The Administrations for Market Regulation of 30 Provinces and Municipalities Carry Out Special Antitrust Enforcement Actions in Field of People’s Livelihood

Since the end of  February, in order to thoroughly implement the important decisions and arrangements of the 20th National Congress of the Communist Party of China on strengthening anti-monopoly and eliminating local protectionism and administrative monopoly, in light of the guidelines of the deployment meeting of the SAMR for special anti-monopoly law enforcement actions, 30 provinces and municipalities has successively made annoncements on launching the special anti-monopoly law enforcement actions in the field of people‘s livelihood, except for the Liaoning Province which has not announced any information yet. [6]

Public Enforcement

Subsidiary of Tianjin Tianyao Pharmaceuticals Co.,Ltd. to Fined CNY 29.88 Million for Market Allocation and Price Fixing

On March 25, 2023, Tianjin Tianyao Pharmaceuticals Technology Co.,Ltd., the holding subsidiary of Tianjin Tianyao Pharmaceuticals Co.,Ltd. is suspected of violating the relevant provisions of the Anti-monopoly Law (“AML”) for reaching and implementing an agreement on fixing or changing prices and dividing the relevant market of fluorouracil injection. Shanghai Administration for Market Regulation is expected to order Tianjin Tianyao Pharmaceuticals Technology Co.,Ltd. to cease the violation and impose on it a fine of 3% of its sales in China in 2020, i.e. CNY 29,884,312.48. [7]

SAMR Issues Administrative Penalty Decision on the Case of Abuse of Dominant Market Position by Tianjin Jinyao Pharmaceutical Co., Ltd.

On March 22, SAMR issued administrative penalty decision on the case of abuse of dominant market position by Tianjin Jinyao Pharmaceutical Co., Ltd., ordering the cessation of violation and imposing a fine of 2% of its sales in 2019, i.e. CNY 27,721,311.36. [8]

Courts Litigation

The SPC Issues the Second-instance Judgment of the Dispute Between Mr./Ms. Wang and Beijing Home Link Real Estate Broker over Abuse of Dominant Market Position 

On March 30, 2023, the Supreme People’s Court (“SPC”) issued the second-instance judgment of the dispute between Mr./Ms. Wang, Beijing Home Link Real Estate Broker Co.,Ltd. and others over Abuse of Dominant Market Position. [9]

The Intellectual Property Court of SPC Releases 12 Judgment Essentials for Monopoly Cases

On March 30, the Intellectual Property Court of the SPC released the Summary of Judgment Essentials of the Intellectual Property Tribunal of the Supreme People’s Court (2022), containing 12 judgment essentials for monopoly cases. [10]

SPC Releases Typical Cases of Intellectual Property Court (2022), Incl. Four Monopoly Cases 

On March 30, SPC released the Typical Cases of Intellectual Property Court of the Supreme People’s Court (2022), including four monopoly cases. [11]

1. <https://www.samr.gov.cn/xw/zj/202303/t20230324_354069.html>

2. <https://baijiahao.baidu.com/s?id=1760620574772807461>

3.  <http://scjgj.beijing.gov.cn/zwxx/gs/202303/t20230321_2941329.html>

4.  <https://gkml.samr.gov.cn/nsjg/fgs/202303/t20230313_353731.html>

5. <http://m.news.cn/2023-03/08/c_1129420056.html>

6. <http://m.news.cn/2023-03/08/c_1129420056.html>

7. <http://static.cninfo.com.cn/finalpage/2023-03-25/1216220933.PDF>

8. <https://www.samr.gov.cn/fldys/tzgg/xzcf/202303/t20230322_354013.html>

9. <https://wenshu.court.gov.cn/website/wenshu/181107ANFZ0BXSK4/index.html?docId=9ukjTD+xVS/cZfa02n1m2mbZ6KNL7Accjt6JKyPxfXiBMp6wbTVMuZO3qNaLMqsJoYuJTZSBk+zACHKBoXOd7jEXDrJShZ59hAlPhzxUNQPZLkVqhEhO7W1b/lOBHcpb>

10. <https://ipc.court.gov.cn/zh-cn/news/view-2270.html>

11. <https://www.court.gov.cn/zixun-xiangqing-394812.html>

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

Editor: IPR Daily-Ann