Unpacking Anti-Monopoly Law Enforcement in China

China Business Law Podcast

English - June 13, 2024 01:39 - 47 minutes - 43.2 MB
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Ying Song

https://www.linkedin.com/in/ying-song-66742526/

Iris Yuan

https://www.linkedin.com/in/irisjlyuan/

Art Dicker

https://www.linkedin.com/in/art-dicker/

Welcome to another enlightening episode of the China Business Law Podcast! In this episode, co-hosts Art Dicker and Iris Yuan sit down with a special guest, Song Ying, to delve into the intricate world of Anti-Monopoly Law (AML) enforcement in China. As an absolute expert in this field, Ying offers a comprehensive overview of current trends, key cases, and practical advice for companies navigating the complexities of AML.

Introduction to Song Ying

Ying is a leading authority on anti-monopoly law, currently an executive partner at AnJie, Ying brings a wealth of knowledge and experience to the podcast.

AML Enforcement in China: A Comparative Overview

Ying kicks off the discussion by outlining the three main types of behaviors regulated under China's AML:

1. Monopoly Agreements: Horizontal and vertical agreements that restrict competition, such as price-fixing, market partitioning, and output restriction.

2. Abuse of Dominance: Actions by dominant companies that exploit their market position, including excessive pricing, exclusionary practices, and refusal to deal.

3. Merger Control: Pre-transaction filings required for large deals to prevent anti-competitive consolidations.

Ying emphasizes the differences between China's approach and that of the EU and the US, noting China's post-regulation stance for monopoly agreements and abuse of dominance, versus its pre-regulation approach for mergers.

Key Cases and Their ImpactThe Alibaba and Meituan Cases

These landmark cases highlight the hefty penalties imposed on tech giants for anti-competitive behaviors:

Alibaba: Fined approximately $2 billion for exclusive dealing practices.Meituan: Similarly penalized for restrictive dealings.Pharmaceutical Industry Focus

Ying notes a recent shift in enforcement priorities to the pharmaceutical sector, where excessive pricing and anti-competitive practices have drawn significant attention.

Hitachi Metals Case: A Landmark Decision

The Hitachi Metals case serves as a crucial example of private enforcement actions. Chinese firms accused Hitachi of refusing to license essential patents, sparking a decade-long legal battle. The case underscored the delicate balance between IP rights and anti-monopoly regulations.

Gun-Jumping Concerns

Companies must be cautious about pre-transaction behaviors that might violate AML provisions. Ying discusses recent stricter enforcement against gun-jumping and advises businesses to thoroughly assess their compliance strategies.

Practical Advice for CompaniesRisk Management

To mitigate AML risks, Ying advises companies to:

Collect evidence demonstrating market competition.Document price trends and market entries/exits.Prepare for potential third-party complaints and investigations.Global Transactions

Ying underscores the importance of considering China's merger control regime for global deals. Foreign-to-foreign transactions are not exempt, and timely filings are crucial to avoid delays and hefty penalties.# Insights from the China Business Law Podcast: Unpacking Anti-Monopoly Law Enforcement in China

Timestamps

00:00 Introduction and Guest Welcome

00:29 Ying's Background and Expertise

03:19 Overview of China's Anti-Monopoly Law

03:52 Types of Regulated Behaviors

07:15 High-Profile Cases and Penalties

14:58 Pharmaceutical Sector Focus

30:54 Private Enforcement and Notable Cases

34:46 Conditional Approvals and Gun Jumping

Producer

Jacob Thomas

Apple Podcasts