The beginning of a new era: China amends its antitrust code for the first time

Merger control

• General notification turnover thresholds are proposed to be increased. At the same time, a new notification threshold is proposed to tackle “killer acquisitions”. SAMR will also see its ability to review below-threshold transactions formalised.
• A new “stop-the-clock” mechanism will allow SAMR to suspend the review period in certain circumstances, which will inject flexibility but also likely prolong some reviews.
• Key sectors in SAMR’s sights could be subject to more strengthened review.
• Fines for failing to file and “gun-jumping” are set to increase substantially.

Anti-competitive agreements

• RPM may fall to be assessed on the basis of an effect on competition, but business operators face a high burden of proof in such cases.
• Vertical agreements may benefit from a safe harbour, depending on the market shares of the parties and the effect of the agreement on competition.
• Firms found to have facilitated anti-competitive agreements, including in a “hub-and-spoke” arrangement, could be liable for significant fines.

Abuse of dominance

• Changes are proposed to be directed at the digital sector.
• "Self-preferencing" by dominant platform operators may be caught as a new type of abusive conduct.

More generally, SAMR will seek to regulate digital sector, protect innovation, reinforce the fair competition review system and ensure data is protected.