The draft amendment to the anti-monopoly law was submitted to the Standing Committee of the National People's Congress for deliberation for the first time

2021-10-20

The draft amendment to the anti-monopoly law was submitted to the 31st meeting of the Standing Committee of the 13th National People's Congress for initial deliberation on the 19th. The revision of the anti-monopoly law adheres to paying equal attention to both standardization and development. In view of the prominent problems existing in the implementation of the anti-monopoly law, further improve the relevant anti-monopoly systems, increase the punishment for monopoly acts, and provide a clearer legal basis and more powerful institutional guarantee for strengthening anti-monopoly and preventing the disorderly expansion of capital. Zhang Gong, director of the General Administration of market supervision, was entrusted by the State Council to explain the draft amendment to the anti-monopoly law at the meeting. He pointed out that since the implementation of China's current anti-monopoly law in 2008, it has played a very important role in protecting fair competition, improving economic operation efficiency, safeguarding consumer interests and social public interests, and promoting high-quality development. At the same time, with the development of China's socialist market economy, the implementation of the anti-monopoly law also shows some problems, such as the more principled provisions of the relevant systems, the insufficient punishment for some monopoly acts, and the need to further improve the law enforcement system. The draft defines the basic status of competition policy and the legal status of fair competition review system. While stipulating that the state should strengthen the basic position of competition policy, it also stipulates that the state should establish and improve the fair competition review system; Administrative organs and organizations authorized by laws and regulations to manage public affairs shall conduct fair competition review when formulating provisions related to the economic activities of market subjects. The draft summarizes the practice of anti-monopoly law enforcement, draws lessons from international experience, and further improves the relevant anti-monopoly systems and rules. It stipulates that operators shall not abuse data, algorithms, technology, capital advantages and platform rules to exclude and restrict competition; It stipulates that business operators shall not organize other business operators to reach monopoly agreements or provide substantive assistance for other business operators to reach monopoly agreements; It is stipulated that an operator with a dominant market position who uses data, algorithms, technology and platform rules to set up obstacles and impose unreasonable restrictions on other operators is an act of abusing the dominant market position; It is stipulated that the anti-monopoly law enforcement agency of the State Council shall strengthen the examination of business concentration in the fields of people's livelihood, finance, science and technology, media and so on according to law. The draft proposes to establish a "safe harbor" system, which stipulates that operators who have reached a monopoly agreement can prove that their market share in the relevant market is lower than the standards set by the anti-monopoly law enforcement agency of the State Council, which shall not be prohibited in principle; Establish a "stop clock" system for the review period of business concentration, which stipulates that the anti-monopoly law enforcement agency of the State Council may decide to suspend the calculation of the review period of business concentration when the review cannot be carried out due to the failure of business operators to submit documents and materials as required, and when new situations and new facts that have a significant impact on the review of business concentration need to be verified. The draft further strengthens the protection of anti-monopoly law enforcement. It stipulates the cooperation obligations of relevant units or individuals when the anti-monopoly law enforcement agency investigates the abuse of administrative power to eliminate and restrict competition according to law, and stipulates that the anti-monopoly law enforcement agency can interview its legal representative or person in charge of operators, administrative organs and organizations authorized by laws and regulations to manage public affairs, It is required to take measures for rectification. The draft also improves the legal liability and increases the punishment. In view of the problems reflected in the anti-monopoly law enforcement, the amount of fines for relevant illegal acts has been greatly increased, and the punishment provisions for the legal representative, main responsible person and directly responsible person of the operator who has reached the monopoly agreement, as well as the provisions on credit punishment have been added. (outlook new era)

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