China Monthly Antitrust Update: November 2023

Legislation

SAMR Issues Guidelines for Enforcement Interviews on Abuse of Administrative Power to Exclude or Restrict Competition

On October 27, in order to better play the role of the anti-monopoly enforcement interview system, standardize the interview work, effectively enhance the effectiveness of anti-monopoly enforcement, and safeguard the market order of fair competition, the State Administration for Market Regulation (“SAMR”) formulated the Guidelines for Enforcement Interviews on Abuse of Administrative Power to Exclude or Restrict Competition, for the compliance by the various anti-monopoly enforcement authorities in carrying out the interview work.

Shanghai AMR Issues Guidelines for Competition Compliance Evaluation of Internet Platform Enterprises

On October 25, in order to support and encourage the healthy, standardized and innovative development of the platform economy, further enhance the resilience , and continuously strengthen the new advantages in international cooperation and competition, the Shanghai Administration for Market Regulation (“AMR”) formulated the Guidelines for Competition Compliance of Internet Platform Enterprises, to help serve the high-quality development of the platform economy with a high level of normalized supervision.

SPP Issues Opinions on Comprehensively Performing Procuratorial Functions to Promote the Development and Growth of the Private Economy

On October 23, in order to give full play to the role of procuratorial functions and to serve and safeguard the development and growth of the private economy, the Supreme People’s Procuratorate (“SPP”) issued the Opinions on Comprehensively Performing Procuratorial Functions to Promote the Development and Growth of the Private Economy, to help better serve the Chinese modernization.

SPC Issues Guiding Opinions on Optimizing the Legal Environment and Promoting the Development and Growth of the Private Economy

On October 10, in order to protect the legitimate rights and interests of private subjects, maintain a unified, fair and high-integrity market competition environment, promote the development andgovernance of private enterprises, and continuously improve the quality of judicial trial protection, the Supreme People’s Court (“SPC”) issued the Guiding Opinions on Optimizing the Legal Environment and Promoting the Development and Growth of the Private Economy.

Authorities

NDRC Issues Typical Cases of Violating the Negative List of Market Access and the Handling (Sixth Batch)

On October 26, the National Development and Reform Commission (“NDRC”) issued the Typical Cases of Violating the Negative List of Market Access and the Handling (Sixth Batch) for the relevant departments in various regions to learn from, in order to give full play to the role of the working mechanism, to effectively solve the difficulties in market entries for the entities, and to create more practical and feasible initiatives and experiences in continuously optimizing the market entry environment.

SAMR Exchanged Anti-monopoly Regulation Experiences with BRICS Countries

From October 11 to 20, Gan Lin, Vice Minister of SAMR and Administrator of the State Anti-monopoly Administration, led a delegation to attend the 8th BRICS International Competition Conference hosted by India and signed the Memorandum of Understanding on Cooperation in the Field of Competition between SAMR and the Agency for Competition Protection and Development of Kazakhstan.

SAMR and Guangdong Provincial Government Signed Cooperation Agreement

On October 19, in order to support Guangdong in building a pilot zone for fair competition in a unified big market in the Guangdong-Hong Kong-Macao Greater Bay Area, SAMR and the People’s Government of Guangdong Province held a signing ceremony for the Cooperation Framework Agreement on Building a Pilot Zone for Fair Competition in a Unified Big Market in the Guangdong-Hong Kong-Macao Greater Bay Area and Jointly Promoting Guangdong to be at the Forefront of the Chinese Modernization, in Guangzhou City, Guangdong Province. Luo Wen, Secretary of the CPC Group and Minister of SAMR, and Wang Weizhong, Deputy Secretary of the Guangdong Provincial CPC Committee and Governor of Guangdong Province, signed the cooperation agreement.

Beijing AMR and Other Three Departments Jointly Held Press Conference: Promoting Continuous Improvement of Fair Competition System, Vigorously Cultivating and Promoting Culture of Fair Competition

On October 10, Beijing AMR, Municipal Finance Bureau, Municipal Intellectual Property Office, and Municipal Science & Technology Commission/Administrative Commission of Zhongguancun Science Park jointly held a press conference on the theme of “Promoting Continuous Improvement of Fair Competition System, Vigorously Cultivating and Promoting Culture of Fair Competition”. In recent years, Beijing has made great efforts to promote market competition, succeeded in pursuing the reform of the business environment and kept optimizing the market competition environment. At the conference, the four departments introduced the progress of work and the achievements of reform in the areas of government procurement, intellectual property protection, and science and technology innovation. Deng Huimin, Member of the CPC Group and deputy director of the Beijing AMR, introduced mainly on the relevant situation in the area of fair competition.

Public Enforcement

Administrative Monopoly Behavior of Municipal Housing and Urban-Rural Development Bureau Corrected by Guizhou AMR

On October 18, the Guizhou AMR issued an announcement stating that it corrected the behavior of a municipal Housing and Urban-Rural Development Bureau that required the city’s real estate management enterprises or individuals to attend training at its designated real estate association. According to the announcement, the Guizhou AMR filed the case and investigated the concerning Housing and Urban-Rural Development Bureau for suspected abuse of administrative power to exclude and restrict competition on July 20, 2023.

Administrative Monopoly Behavior of Local Road Transport Administrative Bureau Corrected by Tianjin AMR

On October 18, the Tianjin AMR issued an announcement stating that it corrected the behavior of local Road Transport Administrative Bureau that restricted competition in the market of on-board special equipment for ride-hailing cabs. According to the announcement, the Tianjin AMR filed the case and investigated the Road Transport Administrative Bureau for suspected abuse of administrative power to exclude and restrict competition on August 2, 2022.

Courts Litigation

Shanghai Intellectual Property Court Heard Case of User Suing E-tailing Platform for Abuse of Market Dominance

On October 13, the Shanghai Intellectual Property Court rendered a first-instance judgment in the case of Li Zhen v. Alibaba Group Holding Limited, Alipay.com Co., Ltd., Ant Group Co., Ltd., Zhejiang Taobao Network Co., Ltd. and Zhejiang Tmall Network Co., Ltd. for abuse of market dominance. The judgment rejected all the plaintiff’s claims and ruled the payment service involved in the e-tailing platforms is not an independent product or service.

[1]https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldj/art/2023/art_c44eb107f028470f8f364f59106785da.html

[2]http://scjgj.sh.gov.cn/919/20231030/2c984ad68b4770da018b7f49fbce4bc9.html

[3]https://www.spp.gov.cn//xwfbh/wsfbt/202310/t20231023_631459.shtml

[4]https://www.court.gov.cn/zixun/xiangqing/413942.html

[5]https://www.ndrc.gov.cn/xxgk/zcfb/tz/202310/t20231026_1361526.html

[6]https://www.samr.gov.cn/xw/zj/art/2023/art_637bc14b2867473484b3a1cc67ef3411.html

[7]https://www.samr.gov.cn/xw/zj/art/2023/art_3ecb5be2b23e475b989e19ba118b4ab8.html

[8]https://scjgj.beijing.gov.cn/zwxx/scjgdt/202310/t20231011_3274513.html

[9]https://amr.guizhou.gov.cn/xwzx/gzdt/202310/t20231018_82782002.html

[10]https://scjg.tj.gov.cn/tjsscjdglwyh_52651/xwdt/gs/202310/t20231018_6432710.html

[11]https://mp.weixin.qq.com/s__biz=MjM5NDYyNzU1OQ==&mid=2650015074&idx=1&sn=e80e6748e89819223881d5f0f8ab18cf&chksm=be844fea89f3c6fc9b4c11e595f55aac4b1c84d0605f5fcf4a9acdb62fc18193766d16c2b29b&scene=126&sessionid=1698817806#rd

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

Editor: IPR Daily-Horace