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Anti-monopoly Law of China Amended

Author:Stephen Yang Click: Time:2022-06-27 09:00:00


Anti-monopoly Law of China was amended on June 24, 2022 by the Standing Committee of the National People's Congress and will take effect on August 1, 2022. Highlights of the changes are listed as follows.


Big Data Related Provisions

1. Art.9: Business operators may not use data and algorithms, technology, capital advantages, platform rules, etc. to engage in monopolistic behaviors;

2. Art.22.2: A business operator with a dominant market position shall not use data, algorithms, technologies, platform rules, etc. to engage in the abuse of a dominant market position as prescribed in the preceding paragraph. 


Safe Harbor Provisions

Art.18: Business operators are prohibited from reaching the following monopoly agreements with their counterparties:

(1) Fix the price of resale goods to a third party;

(2) Limit the minimum price for resale of goods to third parties;

(3) Other monopoly agreements identified by the anti-monopoly law enforcement agency of the State Council.


The agreements specified in items 1 and 2 of the preceding paragraph shall not be prohibited if the business operator can prove that it does not have the effect of eliminating or restricting competition


 Business operators who can prove that their market share in the relevant market is lower than the standards set by the anti-monopoly law enforcement agency of the State Council and meet other conditions set by the anti-monopoly law enforcement agency of the State Council shall not be prohibited..


Legal Liabilities

Art.56: If a business operator violates the provisions of this Law by reaching and implementing a monopoly agreement, the anti-monopoly law enforcement agency shall order it to stop the illegal act, confiscate the illegal income, and impose a fine of not less than 1% but not more than 10% of the previous year's sales. If there is no sales in the previous year, a fine of not more than CNY 5 million shall be imposed; if the monopoly agreement reached has not been implemented, a fine of not more than CNY 3 million may be imposed. If the legal representative, main responsible person and directly responsible personnel of the operator are personally responsible for reaching a monopoly agreement, a fine of not more than CNY 1 million may be imposed.


Where a business operator organizes other operators to reach a monopoly agreement or provides substantial assistance for other operators to reach a monopoly agreement, the provisions of the preceding paragraph shall apply.


Where a business operator voluntarily reports the relevant situation of reaching a monopoly agreement to the anti-monopoly law enforcement agency and provides important evidence, the anti-monopoly law enforcement agency may reduce or exempt the punishment of the business operator as appropriate.


If an industry association violates the provisions of this Law and organizes the operators of the industry to reach a monopoly agreement, the anti-monopoly law enforcement agency shall order it to make corrections, and may impose a fine of not more than CNY 3 million; if the circumstances are serious, the social organization registration authority may revoke the registration according to law.


Art.57: [unchanged] If a business operator violates the provisions of this Law and abuses its dominant market position, the anti-monopoly law enforcement agency shall order it to stop the illegal act, confiscate the illegal income, and impose a fine of not less than 1% but not more than 10% of the previous year's sales.


Art.58: Where a business operator conducts concentration in violation of the provisions of this Law, and has or may have the effect of eliminating or restricting competition, the anti-monopoly law enforcement agency of the State Council shall order it to stop the concentration, dispose of shares or assets within a time limit, transfer business within a time limit, and take other necessary measures to restore to the state before the concentration, and impose a fine of not more than 10% of the sales of the previous year; if the effect of eliminating or restricting competition is not obtained, a fine of not more than CNY 5 million shall be imposed.


Art.62: In the review and investigation conducted by the anti-monopoly law enforcement agency according to law, those who refuse to provide relevant materials and information, or provide false materials or information, or conceal, destroy, or transfer evidence, or have other acts of refusing or obstructing the investigation, the anti-monopoly law enforcement agency shall order it to make corrections and impose a fine of not more than 1% of the previous year's sales; if there is no sales in the previous year or the sales are difficult to calculate, a fine of not more than CNY 5 million shall be imposed; the individual shall be imposed a fine of not more than CNY 500,000.


Art.63 Where the provisions of this Law are violated, the circumstances are particularly serious, the impact is particularly bad, and the consequences are particularly serious, the anti-monopoly law enforcement agency of the State Council may determine a specific amount of fine of not less than two times but not more than five times the amount of the fine as stipulated in Articles 56, 57, 58 and of this Law.



http://www.npc.gov.cn/npc/c30834/202206/e42c256faf7049449cdfaabf374a3595.shtml


Anti-monopoly Law of China Amended
Anti-monopoly Law of China was amended on June 24, 2022 by the Standing Committe
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Contact Us

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Postcode:100190
Tel: 86-10-62966619
Fax: 86-10-62983448
Website:www.ipmarch.cn
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