Highlights of Four New PRC Anti-Monopoly Provisions

Summary

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• Four new anti-monopoly provisions have come into force in China
• They cover prohibition of monopoly agreements, abuse of dominance, merger control and abuse of administrative power
• The new provisions must be carefully examined as they could lead to some significant further burdens for businesses
• For example, China's antitrust enforcement agency can call in certain transactions which fall below the notification threshold. The new provisions may significantly increase uncertainties in this area, and companies should take proactive steps to assess and prepare for potential notification
• Where needed, legal advice should be sought by companies as early as possible

On March 24, 2023, China's antitrust authority, the State Administration for Market Regulation (SAMR), released four provisions implementing the amended PRC Anti-Monopoly Law (AML) (中华人民共和国反垄断法), namely the Provisions for the Prohibition of Monopoly Agreements (禁止垄断协议规定), the Provisions for the Prohibition of Acts of Abuse of Dominant Market Position (禁止滥用市场支配地位行为规定), the Provisions for Reviews of Concentrations of Business Operators (经营者集中审查规定), and the Provisions for the Prohibition of Acts of Abuse of Administrative Power to Eliminate or Restrict Competition (制止滥用行政权力排除、限制竞争行为规定).

With these new provisions released and coming into force on April 15, 2023, companies have been provided with more guidance on how to comply with the amended AML. The four provisions will also have a number of impacts on companies doing business in China.