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State Administration for Market Regulation: Focus on strengthening anti-monopoly supervision and law enforcement in key areas this year

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2022-06-10 10:12:01
On June 8, the State Administration for Market Regulation released the "Annual Report on China's Anti-monopoly Law Enforcement (2021)" (hereinafter referred to as the "Report"). The report pointed out that in 2021, the order of fair competition in my country's market will steadily improve, and important achievements have been made in anti-monopoly and preventing the disorderly expansion of capital.

The report shows that in 2021, 175 monopoly cases of various types will be investigated and dealt with, a year-on-year increase of 61.5%, and the amount of fines and confiscations will be 23.592 billion yuan. Among them, there were 11 monopoly agreement cases, with a fine of 1.673 billion yuan; 11 cases of abuse of market dominance, with a fine of 21.847 billion yuan; 107 cases of public punishment for illegal implementation of concentration of operators, with a fine of 72.35 million yuan; abuse of administrative power to exclude and restrict 46 competition cases. 727 cases of concentration of business operators were concluded, a year-on-year increase of 53%.

Specifically, the first is to resolutely investigate and punish the "choose one" behavior that is strongly reflected in the society in accordance with the law. Focusing on key areas such as e-commerce and takeaways, it has advanced major law enforcement activities in an orderly and stable manner, investigated and dealt with Alibaba Group and Meituan's "choose one" monopoly case, fined 18.228 billion yuan and 3.442 billion yuan respectively, and issued an "Administrative Guidance". The companies involved are required to make comprehensive rectifications, establish rules, and set an example, so as to urge platform companies to consciously standardize their business behavior. At present, the "choose one" behavior in the platform economy has basically stopped, and the market competition order has improved significantly.

The second is to strictly review the concentration of operators involved in platform enterprises in accordance with the law. Strengthen the supervision of mergers and acquisitions in the platform economy, strictly review 40 cases involving the concentration of platform business operators, and legally prohibit the merger of Tencent’s Huya and Douyu in the game live broadcast field. This case is the first prohibited concentration of operators in the platform economy field in my country, and plays an important role in preventing platform monopoly and disorderly expansion of capital.

The third is to fully implement the obligation of platform enterprises to declare according to law. In-depth inspection of more than 1,000 clues in cases where platform companies failed to declare concentration of operators in accordance with the law, filed and investigated nearly 200 cases, and punished 98 cases of failure to declare in accordance with the law and disclosed them to the public. In accordance with the law, the case of Tencent's acquisition of equity interests in China Music Group was ordered to lift the exclusive copyright of online music. It is the first case in my country where necessary measures have been taken to restore market competition for a case that has not been declared according to law, and it has reshaped the competition pattern of my country's online music market.

Fourth, focus on serving the development of the real economy and strengthen anti-monopoly supervision and law enforcement. Focus on strengthening anti-monopoly law enforcement in the fields of people's livelihood such as medicine, building materials, and public utilities, investigate and deal with major monopoly cases in the real economy, such as the Yangzijiang Pharmaceutical, Bull Group monopoly agreement case, and Simcere Pharmaceutical's abuse of market dominance case, and accurately release a fair and just anti-monopoly case. The policy signal of monopoly law enforcement and the promotion of stable growth of people's livelihood.

Fifth, continue to regulate the abuse of administrative power to exclude and restrict competition. Revised and promulgated the Detailed Rules for the Implementation of the Fair Competition Review System, reviewed 244,000 incremental policies and measures, cleaned up 442,000 existing policies and measures, and corrected and abolished 11,000 policies and measures that violated fair competition review standards. Focusing on key areas such as government procurement, transportation, construction, medicine and health, education, insurance, etc., investigated and dealt with 46 cases of abusing administrative power to exclude and restrict competition, such as restricting transactions and hindering the free circulation of commodities, resolutely safeguarding the unified domestic market and promoting the smooth domestic circulation .

The State Administration for Market Regulation stated that 2022 is the year to start again after improving the anti-monopoly system and mechanism and enriching the anti-monopoly supervision force. It is necessary to focus on improving the level of anti-monopoly rule of law, focus on improving the legal system of fair competition, and promote the creation of a market-oriented and legalized international business environment; focus on boosting market expectations and confidence, focus on deepening the implementation of fair competition policies, and promote high-quality through fair competition development; focusing on stabilizing the macro economy, smoothing economic cycles and improving people's livelihood, and focusing on strengthening anti-monopoly supervision and law enforcement in key areas; focusing on promoting the construction of a modern supervision system, more profoundly understanding the laws of market development and competition supervision, and strengthening the ability and level of fair competition governance ; Focus on promoting a higher level of opening to the outside world, focusing on enhancing the company's ability to compete in fair competition and compliance and deepening international exchanges and cooperation in the field of competition.

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