The State Administrative for Industry and Commerce of China finds that a company abused its dominant position by treating customers of equal standing in a discriminatory manner without justifiable cause (Xuzhou City Tobacco Corporation)

SAIC’s First Decision on Discriminatory Treatment* On 4 November 2014, the State Administrative for Industry and Commerce (“SAIC”) published a decision in which it found that the Pizhou branch of the Xuzhou City Tobacco Corporation (the “Pizhou Tobacco Branch”) had abused its dominant position in the tobacco wholesale distribution market by treating customers of equal standing in a discriminatory manner. The SAIC found that the Pizhou Tobacco Branch had violated Article 17 of the PRC Anti-Monopoly Law (the “AML”), which prohibits business operators in a dominant market position from engaging in abusive conduct that eliminates or restricts competition, and it imposed a fine of RMB 1.7 million. We set out in this article some points that are of particular relevance to undertakings subject to

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Authors

  • King & Wood Mallesons (Beijing)
  • King & Wood Mallesons (Beijing)

Quotation

Susan Ning, Kate Peng, The State Administrative for Industry and Commerce of China finds that a company abused its dominant position by treating customers of equal standing in a discriminatory manner without justifiable cause (Xuzhou City Tobacco Corporation), 29 September 2014, e-Competitions Bulletin September 2014, Art. N° 70652

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