In the News: Ericsson's Antitrust Probe; Tax Breaks for CDR Investors; and New Elderly Care Regulation
April 22, 2019 | BY
Marilyn RomeroEricsson faces investigation over its intellectual property licensing practices; investors in CDRs of innovative enterprises will enjoy a three-year tax break on profits; and China issues a new rule to improve the supervision of elderly care services.
Ericsson HQ.
Antitrust investigation against Ericsson launched
Chinese authorities have opened an antitrust investigation into Swedish telecom giant Ericsson. Ericsson confirmed that it is being investigated by China's State Administration for Market Regulation, or SAMR, because of complaints about its intellectual property licensing practices. The company said that it is fully cooperating with the investigation and will refrain from further comment while the probe is ongoing. SAMR launched the investigation at Ericsson's Beijing office following complaints from Chinese mobile phone makers that Ericsson had violated the Anti-Monopoly Law in the 3G and 4G standard essential patents licensing market in China. Since 2011, Ericsson has earned approximately $1 billion in global patent revenue each year. It currently derives about 7 percent of its revenue from China, and is trying to boost its market share in the country.
More from CLP: PRC Bill for Amendments to the Patent Law (Draft); How a Foreign Partner Secures its IPR Transfer in China; China's Anti-monopoly Law – the First Decade in Review; The SAIC bridges IP and competition; Qualcomm and Chinese regulators settle AML charges; The SPC targets indirect patent infringers
Three-year tax break for CDR investors announced
China's Ministry of Finance has given the market in China depositary receipts, or CDRs, a major boost by announcing that investors will be exempt from tax on profits from trading CDRs for three years, in addition to preferential tax treatment on dividend income. In a joint statement with the State Administration of Taxation and the China Securities Regulatory Commission, the Ministry of Finance said investors will not have to pay income tax on any profits they make from trading CDRs of “innovative” enterprises for three years. The move is part of China's efforts to encourage the country's technology companies to list. Last year Alibaba and JD.com, both listed in the U.S., expressed interest of a CDR listing, but so far no deal has been completed.
More from CLP: The Outlook for the Mainland and Hong Kong Capital Markets in 2019; General Office of the State Council, Circular on Forwarding the China Securities Regulatory Commission, Several Opinions on Launching a Pilot Project for the Domestic Offering of Stocks and Depository Receipts by Innovative Enterprises;
China issues regulation to improve elderly care services
China's State Council General Office has released a regulation that seeks to establish a supervision system of elderly care services. The new law has six sections and 28 measures, and seeks to deepen reform of publicly funded elderly care organs, and improve precise investment by the government. It also addresses the protection of the elderly's rights and interests, and also deals with illegal fundraising in the elderly care sector. The regulation also targets increasing channels for investing and financing, and expansion of employment and entrepreneurship, according to Xinhua. The regulation also calls for the establishment of a system that recognizes the skills of caregivers, and provides them with more education and training.
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