Allan Fels

The NDRC found that 12 provincial governments had adopted policies that appointed specific electricity suppliers to construct electricity supply equipment in new residential areas and to unify fees. In response to the NDRC’s investigation and recommendation to comply with the AML, the 12 (...)

On 27 December 2016, the Shanghai Price Bureau published its decision to fine Shanghai Speed Fresh Logistics Co., Ltd. (Speed Fresh) for setting minimum prices in its distribution of pasteurised milk products. The authority had completed its investigation on 13 July 2016. The Shanghai Price (...)

The NDRC recently announced that, on 25 December 2016, the Shandong Price Bureau imposed a fine of RMB 120,000 on Weifang Longshunhe Pharmaceutical for obstructing an investigation under the AML. The NDRC and the Shandong Price Bureau was jointly investigating Weifang Longshunhe Pharmaceutical (...)

On 23 December 2016, the Guangdong High People’s Court upheld the first instance judgment dismissing a lawsuit filed by Chenyawang Animal Husbandry Cooperative (Chenyawang) for lack of jurisdiction. The plaintiff filed a lawsuit against the Huazhou General Food Company and the Huazhou Yangmei (...)

The NDRC announced that applications for administrative reconsideration and administrative litigation of the Shaanxi Price Bureau’s decision in April 2016 relating to price fixing in the motor vehicle inspection fee sector have been unsuccessful. The Shaanxi Price Bureau’s decision, which was (...)

On 16 December 2016, the MOFCOM announced that it had fined Canon RMB 300,000 for failure to notify its proposed acquisition of Toshiba Medical Systems in accordance with the AML on time. Its decision was published on 4 January 2017. The proposed acquisition proceeded in 2 stages. In stage 1, (...)

On 7 December 2016, the NDRC announced that it had investigated and fined Medtronic for engaging in RPM in breach of the AML. The NDRC found that, since 2014, Medtronic had agreed with its distributors to limit the resale, tender, and minimum prices of its cardiovascular, restorative therapy, (...)

On 28 November 2016, the Supreme People’s Court (SPC) dismissed a petition for retrial brought by Mr Tong Hua against the Shanghai branch of China Mobile for its alleged abuse of market dominance. This case had already been before the Shanghai IntermediatePeople’s Court twice and the Shanghai (...)

The NDRC and the Beijing Development and Reform Commission investigated the concrete industry management practices of the Beijing Municipal Commission of Housing and Urban-Rural Development (Beijing Development Commission), in particular its quality control price policy. On 24 December 2014, (...)

On 8 October 2016, the Kunming Intermediate People’s Court amended its first-instance decision in the refusal to deal dispute between Yunnan Yingding Biological Energy, a biodiesel company, and Sinopec’s branch in Yunnan. In December 2014, the court had originally decided the case in the (...)

On 22 August 2016, the Beijing High People’s Court issued its judgment in the first follow-on damages antitrust case, dismissing an appeal for insufficient evidence. The judgment was released on 4 November 2016. In the case, the plaintiff, Mr Tian Junwei, had bought a box of Abbott infant (...)

On 29 July 2016, AB InBev’s acquisition of SABMiller was conditionally approved by the MOFCOM. With the acquisition, AB InBev acquires SABMiller’s 49% interest in CR Snow. When Anheuser-Busch acquired InBev back in 2008, the MOFCOM approved that acquisition on the condition that, inter alia, if (...)

On 22 July 2016, the NDRC sanctioned 3 pharmaceutical companies for engaging in price fixing and joint boycotts in relation to estazolam tablets and active pharmaceutical ingredients (API), in breach of Articles 13(1)(1) and 13(1)(5) of the Anti-Monopoly Law (AML). The 3 companies (Huazhong (...)

On 29 June 2016, the Shanghai No 1 Intermediate People’s Court dismissed an antitrust lawsuit against Panasonic. The judgment was recently made public. The plaintiff, Shanghai Rijing Electric, one of Panasonic’s distributors of factory automation control products in Eastern China, had sued (...)

On 17 June 2016, the NDRC released the Guideline on the Determination of Illegal Gains from Monopolistic Conduct by Business Operators and the Setting of Fines (Consultation Draft) for public consultation. The consultation period ended on 6 July 2016. The draft guideline provides an analytical (...)

On 14 June 2016, the State Council released the Opinion on the Establishment of the Fair Competition Review System in the Development of a Market System, which sets out the reasons for and requirements of the fair competition review system. The fair competition review system is aimed at (...)

The NDRC and the Guangdong Development and Reform Commission (Guangdong DRC) found that the Shenzhen Municipal Education Bureau (SMEB) violated Articles 8, 34, and 36 of the AML in its procurement of student supplies in 2011 and 2014. First, the SMEB guided businesses to make and implement a (...)

On 30 May 2016, the MOFCOM decided to release Wal-Mart from the conditions that it had imposed on Wal- Mart’s acquisition of Yihaodian in 2012. Wal-Mart had applied for release from these conditions in July 2015. When the MOFCOM conditionally approved Wal-Mart’s acquisition in 2012, the (...)

On 26 May 2016, the People’s Court in Shanghai Pudong New Area found in favor of Hantao in the company’s unfair competition lawsuit with Baidu. Dianping.com is a website owned by Hantao that collects local merchants’ information and attracts consumers to post reviews. Baidu was found to have (...)

The NDRC released the Guideline on the General Conditions and Procedures for Exemption of Monopolistic Agreements (Consultation Draft) for public consultation on 12 May 2016. The consultation period ended on 1 June 2016. The NDRC received nearly 200 comments and recommendations from 62 (...)

On 4 May 2016, the MOFCOM released 3 decisions in which it sanctioned various companies for failure to notify their transactions for antitrust review. The decisions were all made on 21 April 2016. In each case, the MOFCOM determined that the transaction constituted a concentration under Article (...)

On 21 April 2016, the SAIC reported a case where the Shandong AIC and the Ningxia AIC fined local bus companies for breaching Article 6 of the AUCL, which provides that public enterprises and other state- sanctioned monopolies must not force others to purchase goods from designated parties and (...)

On 13 April 2016, the Beijing High People’s Court released the Guideline on the Trial of Internet-Related Intellectual Property Right Cases. The guideline contains 42 provisions, covering copyright, trademark, and unfair competition issues. Specifically, there are two competition-related (...)

The Shaanxi Price Bureau fined the Shaanxi Motor Vehicle Inspection Industry Association and 31 motor vehicle inspection businesses in Xi’an, Shangluo, and Yangling for price fixing. Motor vehicle inspection fees were originally government guided in Shaanxi, and they became liberalised on 15 (...)

On 13 April 2016, the NDRC reported that the Shanghai Price Bureau recently fined Hanook Tire for engaging in RPM.  From 2012 to 2013, Hanook signed agreements with its distributors in Shanghai relating to the sale of truck and bus tires and passenger car tires. Those agreements contained (...)

The NDRC released the Anti-Monopoly Guideline for the Automotive Industry (Consultation Draft) for public consultation on 23 March 2016. The consultation period ran from 23 March to 12 April 2016. The draft guideline covers market definition, monopoly agreements, abuse of dominance, and abuse (...)

On 17 March 2016, the Supreme People’s Court (SPC) released its decision to dismiss an application to re-try a case in Shaanxi involving taxis and exclusive dealing. In that case, two private local taxi companies sued three other local taxi companies for exclusive dealing. The SPC made its (...)

During the week of 14 March 2016, the Chinese competition agencies and the Directorate-General for Competition of the European Commission (DG Comp) held seminars for the 12th EU-China Competition Policy Week in Beijing. On 14–15 March 2016, the NDRC Price Supervision and Anti-Monopoly Bureau (...)

On 2 February 2016, the NDRC released both the draft Guideline on the Application of Leniency in Cases Involving Horizontal Monopoly Agreements (draft leniency guideline) and the draft Guideline on Commitments in Anti-Monopoly Cases (draft commitment guideline) for public comment. The public (...)

On 31 December 2015, the NDRC issued the Guideline on the Abuse of Intellectual Property Rights (Consultation draft) (NDRC draft IPR guideline) for public comment. The public consultation period ended on 20 January 2016. The NDRC provided an update on consultation process on 1 February 2016. It (...)

Recently, the SAIC published the decisions of its local offices in Hubei and Jiangxi relating to market sharing agreements by insurance companies. Both decisions involved coinsurance arrangements relating to accidental injury insurance for the construction industry. Hubei The Hubei (...)

NXP’s acquisition of Freescale was conditionally approved by the MOFCOM on 27 November 2015. Both companies are major players in the semiconductor industry. The notification was first accepted in May 2015 and review had entered extended phase 2, but the notification was withdrawn and then (...)

The Gansu Development and Reform Commission (Gansu DRC) recently undertook enforcement action in the car maintenance industry in Wuwei. One case involved pricing fixing, and the other was an administrative monopoly case. Price fixing The Gansu DRC fined 22 car maintenance businesses in Wuwei (...)

Both the NDRC and the Chongqing Administration for Industry and Commerce (Chongqing AIC) have recently taken enforcement action to address anticompetitive conduct involving allopurinol. Allopurinol tablets are a common treatment for gout (known as hyperuricemia), widely used in clinical (...)

On 20 August 2015, the MOFCOM approved Anheuser-Busch InBev’s acquisition of additional shares in Zhujiang Brewery. After the acquisition, Anheuser-Busch InBev’s interest in Zhujiang Brewery will be increased from 25.62% to 29.99%, but the composition of the board of directors and the supervisory (...)

On 17 August 2015, the NDRC found that the Bengbu Municipal Health and Family Planning Commission (Bengbu Health Commission) had abused its administrative power in its drug procurement practices. This is the NDRC’s first published antitrust enforcement decision in the pharmaceutical industry (...)

Yunnan DRC investigates abuse of administrative power and cartel in the telecommunications industry in Yunnan* On 2 June 2015, the NDRC announced that its local office in Yunnan Province, the Yunnan Development and Reform Commission (Yunnan DRC), found that the Yunnan Province Communications (...)

Hunan AIC investigates shale brick cartel in Mayang* On 1 June 2015, the SAIC published the decisions made by the Hunan Administration for Industry and Commerce (Hunan AIC) in December 2014 and January 2015 relating to its investigation into a shale brick cartel in the Mayang Miao Autonomous (...)

On 12 August 2015, the SAIC published a decision made by the Liaoning Administration for Industry and Commerce (Liaoning AIC) on 1 June 2015 to sanction the Fushun branch of the Liaoning Tobacco Company (Fushun Tobacco) for abuse of dominance. The investigation was initiated in June 2014 in (...)

One of China’s first administrative monopoly court cases heard in Guangdong* On 28 May 2015, the Guangdong High People’s Court heard the appeal of the administrative monopoly case against the Guangdong Education Department filed by Shenzhen Sware Technology. The court is expected to announce its (...)

Tied sales of landline telephone services investigated in Ningxia* The SAIC reported that, on 15 May 2015, the Administration for Industry and Commerce in the Ningxia Hui Autonomous Region (Ningxia AIC) suspended its antitrust investigation of the Ningxia branches of China Tietong, China (...)

Fujian Price Bureau adopts antitrust measures for the China (Fujian) Pilot Free Trade Zone* On 30 April 2015, the Fujian Price Bureau issued the Anti-Price Monopoly Measures for the China (Fujian) Pilot Free Trade Zone. The aims of the measures are to enhance the market price order, protect (...)

NDRC Investigates Administrative Monopoly in Hebei Province* On 26 September 2014, the NDRC announced that it had investigated the Transport Department, Price Bureau, and Finance Department of the Hebei Provincial Government for abuse of administrative power. This is the first time that the (...)

Three Cement Companies in Jilin Province Fined RMB 114 million for Price Fixing* On 9 September 2014, the NDRC announced that its local price bureau in Jilin Province, the Jilin Price Bureau, had fined 3 cement companies (Jilin Yatai, Northern Cement, and Jidong Cement) a total of RMB 114.39 (...)

On 29 September 2013, the NDRC announced that it had conducted a nationwide investigation into pricing conduct in the tourism industry this year. The NDRC, together with its local authorities in Hainan, Yunnan, and other popular tourist destinations investigated price alliances established (...)

Mr Yun Zonghua, Director of the Department of International Trade and Economic Affairs of MOFCOM, stated that the newly opened Shanghai Free-Trade Zone involves 5 main areas and over 90 policy measures. The 5 main areas are to : (1) accelerate the transformation of government functions from (...)

On 27 August 2013, MOFCOM announced that it had conditionally approved the acquisition of MStar Semiconductor Inc. (MStar) by MediaTek Inc. (MediaTek). MediaTek is a fabless semiconductor company for wireless communications and digital multimedia solutions, and MStar is a semiconductor (...)

A series of measures related to the coal industry have been adopted in the Shanxi Province. The Joint Sales Implementation Plan for Coal Chemical Enterprises in South East Shanxi Province (Exposure Draft) (Plan) implements the Measures on the Further Improvement of the Development Mode of (...)

In response to the loss of market share and consumer confidence in domestic milk powder brands due to the 2008 milk powder scandal, the MIIT announced that it will strongly promote the consolidation and restructuring of the milk powder sector over the next two years. It aims to have 10 (...)

On 3 May 2013, the Liaoning AIC issued the Provisions on the Procedures for Transferring Evidentiary Leads in Anti-Monopoly Cases. Under the AML, the SAIC is responsible for non-price related aspects of monopoly agreements and abuse of dominance conduct under the AML. The provisions apply to (...)

On 3 April 2013, MOFCOM released the Interim Provisions on the Applicable Standards in Simple Cases of Concentrations of Undertakings (Consultation Draft) (draft Standards) for public consultation. The consultation period ends on 2 May 2013. According to Article 2 of the draft Standards, (...)

It is reported that the National Development and Reform Commission (NDRC) has sent 30 working groups to various provinces and municipalities to conduct a large-scale investigation into unfair competition and monopolistic conduct in the cement industry. Price alliances and leading businesses (...)

The Jiangsu Administration for Industry and Commerce (Jiangsu AIC) investigated one-sided unfair clauses in 12 industries. The 12 industries were water supply ; electricity supply ; gas supply ; telecommunication services ; cable television ; real estate transactions ; interior decoration and (...)

It is reported that the Ministry of Information and Industry Technology (MIIT) will adopt a pilot program to introduce private capital into two core sectors in the telecommunications industry— mobile telecommunications resale services and network access services—within the year. The pilot (...)

The Guangdong Price Bureau, a local authority of the Price Supervision and Anti-Monopoly Bureau of NDRC, has recently investigated and sanctioned a cartel in the local sea sand mining sector pursuant to the AML. According to the NDRC’s news release, the price of land reclamation sand used in (...)

Pursuant to China’s Government Procurement Law and other relevant laws and regulations, the Ministry of Finance published a draft of the Measures on the Administration of Non-tender Government Procurement (draft Measures) for public consultation on 17 October 2012. The consultation period (...)

On 18 September 2012, the SAIC and the ACCC signed a Memorandum of Understanding. The MOU promotes cooperation and coordination between the SAIC and the ACCC, in particular with respect to competition law enforcement, consumer protection, online commodity trading and its related services, (...)

On 13 September 2012, the SAIC and CADE signed a Memorandum of Understanding. The MOU promotes and strengthens the institutional partnership between the SAIC and CADE, especially through information exchange and capacity building activities. In particular, the SAIC and CADE agreed to (...)

On 2 August 2012, the Henan Administration for Industry and Commerce (Henan AIC), a local bureau of the SAIC, disclosed that it had investigated and penalised a cartel in the second-hand car market in Anyang city. After receiving frequent customer complaints, the Anyang Administration for (...)

On 15 June 2012, MOFCOM announced that it had conditionally approved the proposed USD 18.4 billion acquisition of Goodrich Corporation (Goodrich) by United Technology Corporation (UTC), both US-based companies active in the production and sale of aviation equipment on a worldwide basis. (...)

On 6 June 2012, MOFCOM issued a revised form for notifications of mergers and acquisitions and instructions for completing the form pursuant to China’s Anti-Monopoly Law (AML) and the relevant AML implementing regulations. The new form, replacing the current form that has been used since 5 (...)

On 30 May 2012, China’s NDRC and Korea’s KFTC reached a MOU on antitrust cooperation. Mr Hu Zucai, Vice Chairman of the NDRC, and Mr Dongsoo Kim, Chairman of KFTC, signed the MOU in Beijing. The MOU establishes a long-term cooperation framework between the NDRC and the KFTC in eight areas. (...)

On 22 May 2012, the Hubei Price Bureau held a press conference and disclosed that it had recently investigated and handled nine cases involving illegal pricing behaviour. In February 2011, soybean product manufacturers in Shiyan city had colluded through meetings to collectively cease (...)

On 10 February 2012, MOFCOM announced that it had conditionally approved the establishment of a joint venture between Tiande Chemical Holdings Co., Ltd. (Tiande) and Henkel Hong Kong Holding Ltd (Henkel), a subsidiary of Henkel KGaA. The joint venture will be set up for the production of (...)

MIIT published the Provisions on Regulating the Market Order of Internet Information Services (Internet Information Service Rules) on 31 December 2011, which will take effect on 15 March 2012. MIIT had invited comments on two earlier drafts of the Internet Information Service Rules in January (...)

On 26 December 2011, MOFCOM, the NDRC, the Ministry of Public Security, the State Administration for Taxation, and the State Administration for Industry and Commerce (SAIC) jointly promulgated the Working Plan on Rectifying Fees Charged in Violation of Rules and Regulations by Large (...)

On 2 December 2011, the National Development and Reform Commission (NDRC) confirmed that it had received an application for suspension of its investigation from both China Telecom and China Unicom. The NDRC has been investigating China Telecom and China Unicom for alleged discriminatory (...)

The NDRC has imposed fines of almost CNY 7 million, confiscated illegal gains, and imposed a cease-and-desist order on two pharmaceutical companies for monopoly pricing. The decision is the first time that the NDRC has imposed significant penalties for a breach of the AML since the law (...)

On 7 November 2011, the Shanxi Joint Transport Group’s (Shanxi) lawsuit against the Taiyuan Railway Bureau for breaches of the AML and the Anti-Unfair Competition Law (AUCL) was heard at the Taiyuan Xinghualing District People’s Court. The Taiyuan Railway Bureau is authorised to approve the (...)

Taiyuan Railway Bureau Sued for Monopoly* On 7 September 2011, the Shanxi Joint Transport Group Co., Ltd. brought an administrative lawsuit in the Taiyuan Xinghualing District People’s Court against the Taiyuan Railway Bureau for breaches of the AML and the Anti-Unfair Competition Law (AUCL). (...)

The MOFCOM published the Measures on the Implementation of Security Review of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (Measures) on 25 August 2011. The Measures are effective on 1 September 2011 and replace the Interim Measures on Relevant Matters Concerning the (...)

The Price Bureau of Shanxi Province, a local bureau of the NDRC Bureau, has promulgated the Price Regulation of the Shanxi Province (Price Regulation) pursuant to the Price Law 1997 (Price Law). The Price Regulation will take effect on 1 October 2011 and covers matters related to price (...)

Ministry of Industry and Information Technology (MIIT) : Provisions on the Administration of Internet Information Services (Draft for Comments)* The MIIT published and invited public comments on the draft Provisions on the Administration of Internet Information Services (Internet Information (...)

The Administration for Industry and Commerce of Guangdong Province (Guangdong AIC) Investigated and Handled Local Government’s Administrative Monopoly Conduct* In January 2011, three companies complained to the Guangdong AIC, a local bureau of the SAIC, alleging that a municipal government of (...)

On 27 July 2011, China’s three Anti-Monopoly Law enforcement agencies — the MOFCOM, the NDRC, and the State Administration for Industry and Commerce (SAIC) — signed a Memorandum of Understanding (MOU) with the DOJ and the FTC. The MOU was signed by Mr Gao Hucheng, China International Trade (...)

On 9 June 2011, the MOFCOM announced that the State Council had formally approved the official establishment of the Office of the State Council Anti-Monopoly Commission (AMC Office) under the MOFCOM. Mr. Yao Jian, spokesperson for the MOFCOM, said that the AMC Office has been situated within (...)

MOFCOM Invited Comments on the Interim Provisions on the Assessment of Competitive Effects of Concentrations of Undertakings* The MOFCOM issued the draft Interim Provisions on the Assessment of Competitive Effects of Concentrations of Undertakings (Merger Assessment Rules) on 3 June 2011 and (...)

MOFCOM Conditionally Approves the Acquisition of Silvinit by Uralkali* On 2 June 2011, the MOFCOM conditionally approved Uralkali’s proposed US$1.4 billion acquisition of Silvinit, both of which are Russian potash companies. The MOFCOM imposed a set of behavioural remedies. The MOFCOM accepted (...)

The MOFCOM published the Interim Measures on Relevant Matters Concerning the Implementation of Security Review of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (商务部实施外国投资者并购境内企业安全审查 制度有关事项的暂行规定) (the Interim Measures) on 4 March 2011. The Interim Measures were promulgated to (...)

MOFCOM Spokesperson Mr Yao Jian has stated that MOFCOM and related industrial associations are formulating rules to govern contracts between suppliers and retailers. This was in response to questions over Carrefour’s relationships with its suppliers. At the end of 2010, Carrefour was involved (...)

The General Office of China’s State Council published the Circular on Establishing a Mechanism of Security Review of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (《国务院办公厅关于建立外国投资者并购境内企业安全审查 制度的通知》) (the Circular) on 12 February 2011. The Circular was promulgated to guide the (...)

The State Council promulgated the Several Policies on Further Encouraging the Development of the Software and Integrated Circuit Industries (the Policies) on 28 January 2011. According to the Policies, China will further regulate the orderliness of the software and integrated circuit (...)

State Council : Several Policies on Further Encouraging the Development of the Software and Integrated Circuit Industries* The State Council promulgated the Several Policies on Further Encouraging the Development of the Software and Integrated Circuit Industries (the Policies) on 28 January (...)

The Jiangsu Province Administration for Industry and Commerce, a local arm of SAIC, has penalised the Concrete Manufacturer Association of Lianyungang City for market sharing and fixing market shares. Officials at the Jiangsu Province Administration for Industry and Commerce said that, in (...)

Paper Manufacturer Association of Fuyang City Fined for Price Monopoly Conduct* In early January 2011, the NDRC announced that the Zhejiang Price Bureau, a local bureau of the NDRC, had fined the Paper Manufacturer Association of Fuyang City, Zhejiang Province, 500,000 yuan for price fixing (...)

In early January 2011, the NDRC announced that the Zhejiang Price Bureau, a local bureau of the NDRC, had fined the Paper Manufacturer Association of Fuyang City, Zhejiang Province, 500,000 yuan for price fixing and output restriction. The NDRC stated that it received a complaint about the (...)

The State Council announced the revision of the Provisions on Administrative Penalties for Price Violations (Provisions) on 4 December 2010. Promulgated in accordance with China’s Price Law. The revised Provisions were effective on 29 November 2010. The revised Provisions contain 25 (...)

Decision Against Abuse of Dominance Made under China’s Anti-Monopoly Law : Tying Conduct of the Hubei Salt Industry Group, Wuchang Branch* The local price bureau of the National Development and Reform Commission (NDRC) in Hubei (Hubei Price Bureau) has completed an investigation of a tying (...)

The China National Service Corporation for Chinese Personnel Working Abroad (CNSC, 中 国出国人员服务总公司), a centrally-administered state-owned enterprise, has merged with the China National Pharmaceutical Group Corporation (Sinopharm, 国药集团). The State Council approved the merger. Sinopharm is the largest (...)

China’s State Council promulgated the Opinions on the Promotion of Mergers and Restructuring of Enterprises (Opinions) on 28 August 2010 and published the Opinions on the Central Government website on 7 September. The Opinions state that certain industries and sectors in China have serious (...)

The Anti-Monopoly Bureau (AMB) of MOFCOM held a press conference on 12 August 2010 to review the first two years of implementing the AML merger control regime. Director General Mr Shang Ming introduced the enforcement and legislative work of the AMB and answered journalists’ questions. (...)

Huzhou Yiting Termite Prevention Service Co., Ltd (HY) v Huzhou Termite Prevention Research Institute (HT) Pending in the Zhejiang Higher People’s Court* On 25 November 2009, HY filed a suit against HT in the Hangzhou Intermediate People’s Court, alleging that HT had abused its dominance in (...)