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China Regulates Monopolies Caused by Abuse of Administrative Power

Wed, 31 May 2023
Categories: China Legal Trends

On 10 Mar. 2023, China’s State Administration for Market Regulation (SAMR) issued the Provisions on Prohibiting the Acts of Eliminating or Restricting Competition by Abuse of Administrative Power (hereinafter the “Provisions”, 制止滥用行政权力排除、限制竞争行为规定).

This amendment comes four years after China enacted an interim version of the Provisions in 2019.

Among others, the following points are noteworthy.

  • Administrative authorities and organizations authorized by laws and regulations to manage public affairs shall not, directly or in a disguised form, restrict any entity or individual from trading with, purchasing, or using the goods or services provided by their designated operators through abuse of administrative power.
  • Where the anti-monopoly law enforcement agencies consider that acts of eliminating and restricting competition through abuse of administrative power are constituted, they may make a recommendation to the relevant authority at a higher level regarding the disposition according to the law, which shall include measures to eliminate the relevant competition restrictions.
  • Where, during the investigation period, an entity under investigation has proactively taken measures to cease the relevant acts and eliminate the relevant restriction of competition, the anti-monopoly law enforcement agency may terminate the investigation.

 

 

Cover Photo by set.sj on Unsplash

Contributors: CJO Staff Contributors Team

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