ANTITRUST
LEGISLATION
National Healthcare Security Administration Issues Documents to Strike Malicious Monopoly and Bribery of Pharmaceutical Companies
On 5 June 2020, the National Healthcare Security Administration issued the Letter on Soliciting Comments on Guidance on the Establishment of Pharmaceutical Price and Procurement Credit Evaluation System (Draft for Comment) and the Letter on Soliciting Comments on Operating Specifications on Pharmaceutical Price and Procurement Credit Evaluation, in which behaviours of pharmaceutical companies in contravention of laws and regulations or in breach of good faith and fair competition in the process of pricing, marketing, bidding, and performance to the contract to obtain improper benefits are all included in the evaluation criteria, such as commercial bribery, abuse of market dominance, market price manipulation, breach of contract and disruption of procurement process, etc.1
Beijing AMRPublicly Solicits Comments on the Classification Standard for Administrative Penal Behaviours, with Serious Antitrust Violations as Grade A
On 5 June, Beijing Administration for Market Regulation ("Beijing AMR") solicited comments from the public on the Classification Standard for Administrative Penal Behaviours (Draft for Comment) and the Interim Provisions on Management of Administrative Penalties Publication Period of Beijing Administrative for Market Regulation (Draft for Comment). Beijing AMR classified administrative penalties into grades A, B, and C according to the seriousness and the types of violations, and determined the grades for various violations, among which serious violations in the antitrust field are classified as grade A, the minimum publication period of which is 12 months (can be shortened to 6 months upon application), and 36 months under serious circumstances (cannot be shortened upon application).2
Hubei Province Publishes the Notice of Ten Must and Ten Must-Not to Promote the "Waiter Spirit"
On 15 June, the General Office of Hubei Provincial Party Committee and the Provincial Government issued the Notice of Ten Must and Ten Must-Not to Promote the "Waiter Spirit" and asked for rigorous implementation in all localities in accordance with actual conditions. It is particularly required for equal treatment of all market players and strict implementation of the negative list of market access and fair competition review system, whereas prohibited arbitrary lift of entry threshold and engagement in local protection, designated transactions and establishment of market barriers.3
Shandong Province Carries out the Regulation of Enterprise-related Charges by Industry Associations and Chambers of Commerce
On 3 June, Shandong Provincial Social Organization Administration issued the Notice on the Regulation of Enterprise-related Charges by Industry Associations, Chambers of Commerce and other Social Organizations in 2020, which requires the industrial associations and chamber of commerce to regulate their approaches concerning the development of members, adhere to the principle of voluntary engagement and free withdrawal, and prohibits engagement by force or by force in disguise or obstruction to withdrawal using administrative power, monopoly advantages and industry influence; prohibits illegal charges and usage of administrative power and monopoly status to force services for charges or charge without services. In addition, Shandong Provincial Social Organization Administration also issued the Announcement on Publication of Contact Number for Complaints of Illegal Charges by Industry Associations, Chambers of Commerce and other Social Organizations, which specifies the reporting channels for the aforementioned behaviours.4
State Council Issues the Overall Plan for the Construction of Hainan Free Trade Port to Establish and Improve the Fair Competition System
On 1 June, the Central Committee of the Communist Party of China and the State Council issued the Overall Plan for the Construction of Hainan Free Trade Port and proposed in the system design that a fair competition system will be established. The foundational position of the competition policy shall be strengthened to ensure that the market players of all types of ownership enjoy equal treatment in terms of production factor obtaining, standard setting, entry permit, business operation, and preferential policies. Domestic and foreign companies shall be treated equally in government procurement. The anti-monopoly law enforcement shall be strengthened and optimized, administrative monopolies cracked, market monopolies prevented, and fair competition market order maintained.5
Nanjing Promulgates the Measures for Handling Complaints and Reports Concerning Fair Competition Review
Recently, in order to rigorously implement the "six stabilities" and "six guarantees", to further promote the implementation of the fair competition review system, and to create a fair competition environment and a market-oriented, rule-of-law, and international business environment, Nanjing Office of the Joint Conference on Fair Competition Review was the first nationwide to promulgate the Measures for Handling Complaints and Reports Concerning Fair Competition Review of Nanjing City.6
AUTHORITIES
Shanghai AMR Releases Anti-monopoly Compliance Promos
On 30 June 2020, Shanghai Administration for Market Regulation ("Shanghai AMR") released a series of anti-monopoly compliance promos which introduced various monopolistic violations in order to further enhance the undertakings' awareness of fair competition and anti-monopoly compliance, to help undertakings engage in competition in an orderly manner, to promote the further optimization of the city's business environment and to form a good atmosphere and understanding on promoting a competitive culture.7
Shaanxi AMR Holds a System-wide Video Conference to Promote Fair Competition Review and Policy Cleansing
Recently, Shaanxi Administration for Market Regulation ("Shaanxi AMR") held a video conference in the provincial market regulation system to promote fair competition review and cleanse policy measures that impede unified markets and fair competition. The meeting asked the market regulation administrations at all levels in the province to raise political awareness and further deepen understanding of the importance and urgency of fair competition review and cleansing policy measures that impede unified markets and fair competition; to fully enforce accountability of cleansing, accurately comprehend the cleansing requirements, and to complete all cleansing tasks without compromise.8
Shandong Province Improves Fair Competition Review Work System
Recently, the joint conference on fair competition review work of Shandong province revised and improved the Working Rules of the Joint Conference on Fair Competition Review Work of Shandong Province and the Working Specifications of the Office of the Joint Conference on Fair Competition Review Work of Shandong Province, and formulated the Regulations of the Office of the Joint Conference on Fair Competition Review on the Consultation on the Fair Competition Review, which laid a solid foundation for further promotion of fair competition review in Shandong Province.9
Shandong Local AMRs Issue Warnings on the Motor Vehicle Testing Industry
On 22 June, Shandong Weifang Administration for Market Regulation issued a warning on the pricing behaviour of various motor vehicle testing agencies and associations in the city, and clearly stated that it would seriously investigate and punish violations of the Price Law and the Anti-monopoly Law, including collusion and manipulation of market prices; fabrication and distribution of price rise information to drive up prices; participation of monopoly agreements; and using false or misleading pricing forms or methods to deceive or induce consumers or other operators to trade.10 On 19 June, the Shandong Linyi Administration for Market Regulation issued the same warning notice.11
Guangxi, Guizhou and Other Provinces Hold Plenary Conferences of the Joint Meeting on Fair Competition Review
On 19 June, the third plenary conference of the inter-office joint meeting on Guangxi fair competition review was held in Nanning. The meeting summarized the implementation of the fair competition review system, reviewed relevant documents, and studied and deployed the key work for the next stage. The meeting emphasized that all member units should highlight and focus on the five aspects of the work, and effectively and orderly promote the fair competition review to achieve greater results.12 Recently, the plenary conference of the joint meeting on Guizhou province fair competition review was held in Guiyang. The meeting reviewed and approved the Measures on Coordinating and Resolving the Major Difficulties of Guizhou Province Fair Competition Review (Trial) and the Measures on Evaluation and Correction of Guizhou Province Implementation of the Fair Competition Review System (Trial).Anhui Province and Jilin Province also successively held plenary conferences of the joint meeting on provincial fair competition review.12,13
Shanghai AMR Investigates SMEs' Understanding of the Exemption System for Monopoly Agreement
On 12 June, to improve the operating efficiency, enhance the competitiveness, and protect the legal rights and interests of SMEs, also to further optimize the business environment, Shanghai AMR designed a questionnaire on SMEs' knowledge of the exemption system for monopoly agreements so as to investigate SMEs' understanding of monopoly agreement exemptions and applicable conditions, as well as their opinions and suggestions on relevant regulations.14
Sichuan Suining Administration for Market Regulation Interviews 12 Public Utility Companies
On 9 June, the Sichuan Suining Administration for Market Regulation and the Suining Consumer Protection Committee jointly organized a public enterprise interview meeting on the theme of "Creating a Safe and Comfortable Consumer Environment and Optimizing and Enhancing the Business Environment" and interviewed 12 public utilities in the five industries of communication, water, electricity, gas, and finance. Typical cases such as excessive charging and bundling that consumers care most about were notified, and the rectification work as to the illegal behaviours of public utility enterprises were deployed specifically.15
SAMR and Three Other Departments Issue the Work Emphasis of the 2020 Inter-ministerial Joint Meeting on the Fair Competition Review
On 8 June, in order to further promote the fair competition review work, the State Administration for Market Regulation ("SAMR"), the National Development and Reform Commission, the Ministry of Finance and the Ministry of Commerce, together with the relevant departments, issued the Work Emphasis of the 2020 Inter-ministerial Joint Meeting on the Fair Competition Review, which includes (1) further improving the review rules; (2) comprehensively cleaning up the existing stock of policy measures; (3) effectively improving the review quality of incremental measures; (4) constantly strengthening institutional constraints; and (5) focusing on strengthening the fundamental support of the review.16
Fujian AMR Issues the Warning on the Implementation of the Policy of Reducing Electricity Prices by Power Supply Transferring Providers
On 1 June, in order to urge each power supply transferring providers to pass on the reduced electricity fees to end users in full and in time, Fujian Administration for Market Regulation ("Fujian AMR") issued the Warning on the Implementation of the Policy of Reducing Electricity Prices by Power Supply Transferring Providers, reminding the power supply transferring providers of self-check and self-correction, so as to ensure that the policy is implemented and the electricity price standard of industry and commerce are not raised without authorization.17
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Footnotes
2. http://scjgj.beijing.gov.cn/zwxx/ttgg/202006/t20200605_1918026.html
3. http://www.hubei.gov.cn/zwgk/hbyw/hbywqb/202006/t20200622_2396799.shtml
4. http://mzt.shandong.gov.cn/art/2020/6/3/art_92774_9176226.html
5. http://www.xinhuanet.com/politics/2020-06/01/c_1126061034.htm
6. http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200611_316954.html
7. https://mp.weixin.qq.com/s/aDMuqyI0iJf_VfIyoRIl0A?scene=25#wechat_redirect
8. http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200622_317324.html
9. http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200622_317323.html
10. http://news.bandao.cn/a/381090.html
11. https://mp.weixin.qq.com/s/Pbx7t4hEKAn2urEkHLS1PA?sc
12. http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200611_316956.html
13. http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200611_316955.html; http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200611_316953.html
14. https://mp.weixinbridge.com/mp/wapredirect?url=https%3A%2F%2Fwww.wjx.cn%2Fm%2F80506902.aspx
16. http://www.samr.gov.cn/fldj/tzgg/gpjzsc/202006/t20200618_317119.html
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