Notes on m88 casino bonus code Amended AML a month on
On June 24, 2022, after two years of deliberation, China’s National Peoples’ Congress (“NPC”) approved m88 casino bonus code amendments to China’s Anti-Monopoly Law (“AML”) which took effect on August 1, 2022 (“Amended AML”).
m88 casino bonus code original AML was enacted in 2008 and has governed m88 casino bonus code enforcement of antitrust laws in China for 14 years. During this time, China has become one of m88 casino bonus code three most important antitrust enforcement jurisdictions. Despite its achievements, m88 casino bonus code AML had some shortcomings such as insufficient penalties, ambiguities in some areas, lack of hub-and-spoke rules, etc. m88 casino bonus code Amended AML aims to fill such gaps and is expected to bring antitrust law enforcement in China to anom88 casino bonus coder level.
Highlights of m88 casino bonus code Amended AML
Fair competition review regime included in law. m88 casino bonus code fair competition review system is designed to prevent government agencies or m88 casino bonus code like from treating business undertakings in an anti-competitive manner. Though m88 casino bonus code regime was included in m88 casino bonus code Amended AML, it has been implemented for several years as a ministry regulation. It has been reported that during m88 casino bonus code last decade, 4.68 million government policy documents have been reviewed under m88 casino bonus code regime, of which 53,000 policies were repealed or revised accordingly.
Hub & Spoke cartels added in law. Hub & Spoke cartels are explicitly prohibited in m88 casino bonus code Amended AML and undertakings that facilitate cartels will be subject to m88 casino bonus code same penalties as competitors within cartels.
By explicitly putting m88 casino bonus code burden of proof on non-anticompetitive effect upon m88 casino bonus code defendants, m88 casino bonus code Amended AML resolves m88 casino bonus code long-standing divergency regarding resale price maintenance (“RPM”) between m88 casino bonus code courts and m88 casino bonus code enforcement agencies.
Safe harbor added in law. Safe harbor for vertical restraints has been introduced to m88 casino bonus code Amended AML which authorizes m88 casino bonus code State Administration for Market Regulation (“SAMR”) to craft detailed rules. m88 casino bonus code enforcement agency is currently debating and formulating whem88 casino bonus coder RPM can be protected by safe harbor and m88 casino bonus code circumstances in which safe harbor will be applied.
Antitrust penalties have been drastically increased and individual liabilities introduced. Maximum fines for certain violations (e.g., gun-jumping) are increased and individuals (e.g., senior management and employees directly responsible for monopoly agreements) are subject to fines of up to RMB 1 million. For egregious cases, penalties could be 2-5 times that of m88 casino bonus code maximum fines. It is yet to be clarified whem88 casino bonus coder individual liabilities will only apply to cartels or be extended to vertical restraints.
Criminal liabilities added in law. A general provision that companies and individuals may be subject to criminal liability has been introduced in m88 casino bonus code Amended AML for m88 casino bonus code first time. This clause shall be implemented until China’s Criminal Law provides specific crimes.
m88 casino bonus code Amended AML empowers SAMR to review transactions that have potential anti-competitive effects but have not met m88 casino bonus code notification threshold, which shows a convergence with international enforcement trends regarding “killer acquisitions.”
“Stop-m88 casino bonus code-clock” added to m88 casino bonus code merger review. It signifies that m88 casino bonus codere is no need to pull and refile a notification with competition/regulatory concerns if SAMR cannot complete m88 casino bonus code review within m88 casino bonus code statutory review period. It remains to be seen how SAMR will apply this mechanism and its impact on merger review timelines in China.
What happened in August 2022
m88 casino bonus code enforcement team at SAMR was expanded. Understaffing has been a big problem in China’s antitrust enforcement. More than ten newly hired officers were added to m88 casino bonus code SAMR enforcement team and m88 casino bonus code requirements on m88 casino bonus code provision of data in merger filings has been tightened.
Certain merger review work has been delegated to local enforcement agencies. Local antitrust enforcement agencies have been authorized to investigate conduct violations for a long time. For m88 casino bonus code next three years, local counterparties of SAMR in Beijing, Shanghai, Guangdong, Chongqing and Shaanxi have been delegated to review some simple procedure filings with a local nexus. In m88 casino bonus code first month of m88 casino bonus code Amended AML, 8 cases were delegated to its local counterparts, while 37 cases were handled by SAMR itself, according to m88 casino bonus code information published by m88 casino bonus code agencies.
Enforcement focus on m88 casino bonus code digital economy and livelihood related products continue. m88 casino bonus code Amended AML contains newly added sloganized rules regarding m88 casino bonus code digital economy that echo China’s antitrust enforcement of digital big tech, which began in 2020. This trend will continue and livelihood related products/services such as pharmaceuticals and public utilities etc. will remain m88 casino bonus code focus of antitrust enforcement in China.
New modes of enforcement expected to be applied. In April 2021, administrative guidance was adopted in m88 casino bonus code Alibaba case which required Alibaba to formulate a rectification plan and submit annual self-assessment reports. It was used again in m88 casino bonus code Meituan case in 2021. It is expected that m88 casino bonus codere will be more cases with this type of administrative guidance in m88 casino bonus code future.
Local enforcement agencies motivated to enforce law more actively. m88 casino bonus code Amended AML garnered a lot of attention from m88 casino bonus code public in China. m88 casino bonus code trend of local counterparts of SAMR investigating antitrust violations in a more active way, which first began in late 2020, would continue.
