China Monthly Antitrust Update: June 2023

Antitrust

Legislation

The Implementation Opinions of Haidian District of Beijing Municipality on Further Promoting Fair Competition Reviews Issued

On May 19, 2023, the General Office of the People's Government of Haidian District of Beijing Municipality issued the Implementation Opinions of Haidian District of Beijing Municipality on Further Promoting Fair Competition Reviews, in order to further implement the fair competition review system and improve the fair competition review mechanism in Haidian District. [1]

SAMR Seeks Comments on the Antitrust Guidelines on Trade Associations

On May 15, the State Administration of Market Regulation (“SAMR”) published the Antitrust Guidelines on Trade Associations (Draft for Comments) and made it available for public comment. [2]

SAMR Releases Revised Version of Guidelines for Implementation of Third-party Appraisal for Fair Competition Review

On May 15, SAMR released the revised Guidelines for Implementation of Third-party Appraisal for Fair Competition Review, serving as the reference for the offices of fair competition review coordinating mechanisms at all levels and policy-making bodies in carrying out third-party appraisal for fair competition reviews. [3]

SAMR Seeks Comments on the Regulations on Fair Competition Review

On May 12, SAMR published the Regulations on Fair Competition Review (Draft for Comments) and made it available for public comment. [4]

Chongqing releases the List of Key Tasks for Optimizing Business Environment and Stimulating Market Vitality, Proposing to Strengthen Anti-Monopoly Law Enforcement and Fair Competition Review

On May 11, the General Office of Chongqing Municipal People's Government publicly released the List of Key Tasks for Optimizing Business Environment and Stimulating Market Vitality, proposing to strengthen anti-monopoly law enforcement and fair competition review. [5]

The Ministry of Housing and Urban-Rural Development and the SAMR jointly issue an Opinion to Regulate Monopolistic Practices of Real Estate Brokerage Services 

On May 6, the Ministry of Housing and Urban-Rural Development and the SAMR jointly issued the Opinions of the Ministry of Housing and Urban-Rural Development and the State Administration for Market Regulation on Regulating Real Estate Brokerage Services, which requires reasonable determination of brokerage service fees, strict implementation of clear price quotations, and strict prohibition of manipulation of brokerage service fees. Real estate brokerage agencies with a dominant market position shall not abuse their position to charge unfairly high brokerage service fees. The Internet real estate platforms shall neither force the real estate brokerage agencies joining the platform to apply a unified rate for brokerage service fees nor interfere with the real estate brokerage agencies’ independent determination of fee rates. Real estate brokerage agencies, real estate Internet platforms, and related trade organizations suspected of implementing monopolistic behavior, market regulatory authorities shall conduct an anti-monopoly investigation in accordance with the law. [6]

Authorities

Henan Administration for Market Regulation Surveys Local Anti-Monopoly Law Enforcement and Fair Competition Reviews and Visits Local Public Enterprises

On May 29, 2023, a five-member delegation led by Yang Ziming, the first-level inspector of Henan Administration for Market Regulation (“AMR”), went to Dengzhou City to survey the anti-monopoly law enforcement and fair competition review work. After the symposium, Yang Ziming carried out field visit and survey at local public enterprises including Dengzhou City Water Group Co., Ltd., and Dengzhou Huarun Gas Co., Ltd.. [7]

SAMR Launches Theme Solicitation for China Fair Competition Policy Promotion Week 2023

In order to further promote the implementation of the fair competition policy, properly hold the China Fair Competition Policy Publicity Week, vigorously advocate and carry forward the culture of fair competition, and enhance the awareness of fair competition of the whole society, the SAMR sought a public consultation for the theme of China Fair Competition Policy Promotion Week 2023 from May 26 to June 10. [8]

Public Enforcement

Beijing Zizhu-Pharm.Management Co., Ltd. Fined Over 12.64 million for Vertical Monopoly Agreement

On May 29, 2023, the SAMR released the administrative penalty decision imposed by the Beijing AMR on Beijing Zizhu-Pharm.Management Co., Ltd. for reaching and implementing a monopoly agreement with trading counterparties to fix resale prices and set minimum prices, and the company was fined RMB12,643,552.67. [9]

Grand Pharmaceutical (China) Co., Ltd., and Wuhan Healcare Pharmaceuticals Co., Ltd. Fined 320 million for Monopoly Agreement and Abusing Dominant Market Position

On May 28, the SAMR released the administrative penalty decision of Grand Pharmaceutical (China) Co., Ltd. (“Grand Pharmaceutical”) and Wuhan Healcare Pharmaceuticals Co., Ltd. for reaching and implementing monopoly agreement and abusing dominant market position. The total fine for the case is RMB 320 million, among which the total fine imposed on Grand Pharmaceutical was RMB 285 million, ranking the tenth largest amount of anti-monopoly administrative penalties imposed on a single enterprise in China. [10]

Two Gas Companies Fined RMB 1.75 million by Anhui AMR for Monopoly Agreement

On May 11, Anhui AMR imposed an administrative penalty on Bengbu Anye Clean Energy Co., Ltd and Bengbu Xinyuan Gas Co., Ltd for reaching and implementing monopoly agreement, the total fine was about RMB 1.75 million. [11]

Tendering Company Punished by Fuzhou Municipal Finance Bureau for Setting Bidding Conditions that Violate Fair Competition Policy

On May 10, Fuzhou Municipal Finance Bureau released an administrative penalty decision of Fujian Hongsheng Tendering Co., Ltd. to warn the company for setting conditions in the bidding documents that violate the fair competition policy. [12]

Heilongjiang AMR Corrects Harbin Urban Management Bureau's Abuse of Administrative Power to Exclude and Restrict Competition

On May 9, the SAMR issued an announcement on its website stating that the Heilongjiang AMR corrected the Harbin Urban Management Bureau's abuse of administrative power to exclude or restrict competition (“administrative monopoly”). According to the announcement, the Heilongjiang AMR filed the case and investigated the Harbin City Administration Bureau for suspected administrative monopoly behavior on September 19, 2022. [13]

Administrative Monopoly Behaviors of Shaoxing Xinchang Government and Ningbo Xiangshan County Housing and Urban-Rural Development Bureau Corrected by Zhejiang AMR

On May 6, the Zhejiang AMR issued an announcement, stating that the Zhejiang AMR corrected the administrative monopoly behaviors of Shaoxing Xinchang People’s Government and Ningbo Xiangshan County Housing and Urban-Rural Development Bureau. According to the announcement, both cases were filed and investigated by Zhejiang AMR on October 10, 2022. [14]

SAMR Announced Three Administrative Monopoly Cases

On May 4, the SAMR announced three administrative monopoly cases, including Gansu AMR correcting the Lanzhou Urban Management Committee's abuse of administrative power to exclude or restrict competition, Hubei AMR correcting the Jingmen City Urban Management Law Enforcement Committee's abuse of administrative power to exclude or restrict competition, and the Chongqing AMR correcting the Huaxi Sub-district Office's abuse of administrative power to exclude or restrict competition. [15]

Merger Control

SAMR Unconditionally Approves Acquisition of Activision Blizzard by Microsoft

On May 30, 2023, SAMR announced the list of cases of unconditional approval of concentration of undertakings from May 15 to May 21, 2023, in which the approval of Microsoft 's acquisition of Activision Blizzard was concluded on May 18. [16]

Courts Litigation

The Intellectual Property Court of Fuzhou Intermediate People's Court Successfully Facilitates the First Settlement of a Dispute over Abuse of Dominant Market Position

On May 16, the Intellectual Property Court of Fuzhou Intermediate People's Court (“Fuzhou IPC”) successfully facilitated the first settlement of a dispute over abuse of dominant market position. The judge of Fuzhou IPC coordinated the parties to agree on the temporary steam price during the litigation, and organized three mediations based on the research, which eventually promoted the parties to reach a new consensus on the price of heat supply and to sign the new heat supply contract, leading to a proper settlement of the case. As the first monopoly dispute accepted by the Fuzhou IPC since its establishment, the proper resolution of this case is of exemplary significance. [17]

One Monopoly Administrative Case on the List, Hainan High People’s Court Released the Top Ten Typical Cases of Judicial Protection of Intellectual Property Rights of 2022

On May 5, Hainan High People’s Court Released the Top Ten Typical Cases of Judicial Protection of Intellectual Property Rights of 2022, including one monopoly administrative case on anti-monopoly administrative penalty, Hainan Nandun Industry Co., Ltd. v. Hainan Administration for Market Regulation. [18]

[1] <https://zyk.bjhd.gov.cn/jbdt/auto10489_51767/zfwj_57152/202305/t20230522_4603810.shtml>

 [2]<https://www.samr.gov.cn/hd/zjdc/art/2023/art_dc8a945808794ad2b15de191f657d645.html>

[3] <https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldj/art/2023/art_0f5f4bc78b05481abb487d5195d96a6e.html>

 [4]<https://www.samr.gov.cn/hd/zjdc/art/2023/art_647feda81bb249a5981a18c7e5efd4d2.html>

[5]<https://www.cq.gov.cn/zwgk/zfxxgkml/szfwj/qtgw/202305/t20230511_11955558.html>

[6] <https://www.mohurd.gov.cn/gongkai/zhengce/zhengcefilelib/202305/20230508_771481.html>

 [7]<https://www.sohu.com/a/680078014_666407>

[8] <https://www.samr.gov.cn/xw/zj/art/2023/art_b4b054f6b06c49ee867b43feba80aa3b.html>

[9]<https://www.samr.gov.cn/fldys/tzgg/xzcf/art/2023/art_c1e2b2afb9774086834cff4a5d052149.html>

[10] <https://www.samr.gov.cn/fldys/tzgg/xzcf/art/2023/art_991d1d80a4a644aab4d15c8b998101de.html>

[11] <https://www.samr.gov.cn/fldes/tzgg/xzcf/art/2023/art_e9a5723b2438445f9ad88878d1f8353c.html>

[12]<http://www.fuzhou.gov.cn/zfxxgkzl/sczj/zfxxgkzl/gkml/xzxkdsxyjtjslcxqxyjsqxzxkxytjdqbclmljblqk/202305/t20230510_4601513.htm>

[13]<https://www.samr.gov.cn/cms_files/filemanager/samr/www/samrnew/jzxts/tzgg/qlpc/202305/t20230509_355102.html>

 [14]<https://www.samr.gov.cn/fldys/tzgg/xzjj/art/2023/art_5945f4b4eec540659496d90cdc19c774.html>

 [15]<https://www.samr.gov.cn/fldys/tzgg/xzjj/art/2023/art_68ffffccd68b4a43add6d8e83f3cb3e5.html>；

[16]<https://www.samr.gov.cn/fldys/tzgg/xzjj/art/2023/art_52eb36fcaa4349b191369a1f2d72b5cc.html>

[17]<https://www.samr.gov.cn/fldys/ajgs/wtjjz/art/2023/art_f450d062d1e94b3a807e557178b7009f.html>

[18] <https://news.fznews.com.cn/fzxw/20230516/N6pSi3cm30.shtml>

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

Editor: IPR Daily-Ann