State Administration for Industry and Commerce, Provisions for the Prohibition by Administrations for Industry and Commerce of Acts of Abuse of Dominant Market Position

Main contents: A business operator that has a dominant market position is prohibited, without a legitimate reason, from carrying out the following activities and the means of which are detailed in the Provisions:

(i) refusing to trade (Article 4);

(ii) carrying out acts that restrict trading (Article 5);

(iii) tying the sale of goods or imposing other unreasonable transaction conditions (Article 6); and

(iv) imposing discriminatory practices (Article 7).

The determination of whether a business operator has a dominant market position shall be made on the basis of the business operator's share of the relevant market and the state of competition in the relevant market, the business operator's capacity to control the sales market or raw materials procurement market, the business operator's financial strength and technical conditions, the degree to which other business operators are reliant on the business operator for their transactions, and the degree of difficulty for other business operators to enter the relevant market (Article 10).

If a business operator abuses its dominant market position, the administration for industry and commerce shall order it to cease the illegal act, confiscate the illegal income and impose a fine of not less than 1% and not more than 10% of the previous year's sales turnover (Article 14).

Related legislation: PRC Anti-monopoly Law, Aug 30 2007, CLP 2007 No.8 p.28; and Provisions on Procedures for Investigation and Handling of Cases of Monopolistic Agreements and Cases of Abuse of Dominant Market Position by Administrations for Industry and Commerce, May 26 2009, CLP 2009 No.6 p.47