Legislation roundup: Auto sales, IP competition, and financial regulation

April 20, 2017 | BY

Katherine Jo &clp articles &

MOFCOM has abolished the unitary system of authorized brand vehicle sales, the State Council Anti-monopoly Committee has clarified that IP possession doesn't constitute a dominant market position, and the CBRC has pledged to review banks' shareholder qualifications

Retail and Wholesaling

Ministry of Commerce, Measures for the Administration of the Sale of Motor Vehicles

As compared to the previous version of the Measures, the new Measures abolish the word “brand”, thereby breaking down the unitary system of authorized brand vehicle sales.

A supplier or dealer may not place restrictions on the suppliers of automotive parts, supplies, finance, insurance, rescue and other such products or after-sales service providers that consumers may avail themselves of.

Further reading

Intellectual Property

Anti-monopoly Committee of the State Council, Anti-monopoly Guidelines in Connection with the Abuse of Intellectual Property (Draft for Public Comments)

A business operator shall not be inferred to have a dominant market position in the relevant market on the basis of possessing intellectual property.

If comprehensively assessing the impact of an act on competition solely by defining the relevant goods market is difficult, definition of the relevant technology market may be required. Depending on the circumstances of the specific case, the impact of the act on factors such as innovation, research and development may additionally be taken into consideration.

See the digest for more details.

Further reading

Banking

China Banking Regulatory Commission, Circular on Duly Remedying Regulatory Shortcomings to Enhance Regulatory Effectiveness

Uniform rules for the administration of the shareholders of banking financial institutions will be studied and formulated, and regulatory requirements such as the qualifications for shareholders of banking financial institutions and the number of institutions with an equity interest and controlling interest will be clarified.

Equity transfers effected on primary and secondary markets, and domestic and foreign markets will all be incorporated into the scope of centralized review.

Further reading

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