In the News: Revised Anti-Monopoly Law; BIS RMB Liquidity Pool; and Enhanced Online Content Review

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Revised Anti-Monopoly Law

On June 24, the 13th National People's Congress (NPC) Standing Committee voted to amend the PRC Anti-Monopoly Law (反垄断法), which will come into force on August 1, 2022.

The revised law introduces a reference to the digital sector, barring business operators from "using data and algorithms, technology, capital advantages, and platform rules etc. to engage in any monopolistic conduct prohibited by this Law." Additionally, the amended law brings in an effects-based test for the legality of resale price maintenance, meaning that business operators will be allowed to fix the price, set a minimum price, or enter into other agreements regarding the resale of goods if they can prove that "it does not have the effect of excluding or restricting competition" or their market share falls below stipulated thresholds and "other conditions" stipulated by regulators are fulfilled. The law also empowers the State Administration for Market Regulation (SAMR) to require notification of concentrations (mergers) even where the notification thresholds are not met and significantly increases the penalties for infringement, potentially up to five times the maximum fine in serious cases.