Conduct Rules Under China's Anti-Monopoly Law - Throw Out Your Old Rule Book
Thursday, 27 August 2009
In recent months, China's competition authorities have begun clarifying how they will enforce the new Anti-Monopoly Law 's broad prohibitions on abuse of a dominant market position and on agreements that eliminate or restrict competition. Draft rules, published for consultation purposes, indicate that China will take a unique approach on a range of issues relevant to the treatment of cartels, vertical restraints, and the conduct of dominant firms. Accordingly, all businesses with operations, sales or trading partners in China need to be aware of the distinct Chinese approach so they can appropriately adapt their trading practices and compliance policies in time for the ramp-up in enforcement activities that is expected in the coming months.
- The scope of business activities covered by the rules and the sectors that may face heightened scrutiny;
- China's unique regulatory approach to concepts such as unfair pricing and limitations on the development of new technology;
- The implications of the developing rules for supply and distribution agreements, joint ventures, IP licensing, and other common business arrangements;
- The prospects for private actions, and the challenges defendants will face in relation to such actions; and
- Practical guidance on how businesses should deal with existing arrangements.
For additional information please contact Ms. Noel Hui at + 852 2843 4569 or firstname.lastname@example.org.
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