The beginning of a new era: China amends its antitrust code for the first time
Related people
30 June 2022
Amendments to China’s Anti-Monopoly Law, together with proposed revisions to various implementing regulations, are set to make substantial changes to both SAMR’s antitrust procedures and its substantive assessments. Key takeaways include:
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.