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The NDRC Muscles Up: Increased Enforcement Activity by Chinese Pricing Regulator

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Ho Victor
Victor Ho

Registered Foreign Lawyer, Cal

Hong Kong

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Renard Francois
François Renard

Partner

Hong Kong

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29 November 2011

Two major announcements by the National Development and Reform Commission ("NDRC") in recent weeks suggest that the anti-monopoly enforcement authority might be entering a new period of heightened activity in its fight against pricing abuses.

​First, on 9 November, China Central Television's ("CCTV") News 30' program carried a report concerning an investigation being conducted by the NDRC into alleged abuses of dominance in the broadband access market by state-owned media giants China Telecom and China Unicom. Then, on 14 November, the NDRC announced that two Chinese pharmaceutical companies in Shandong Province had been fined more than RMB 7 million (approximately USD 1.1 million) for abuse of dominance in the market for high blood pressure medication. This represents by far the largest fine levied by the NDRC for anti-competitive pricing practices since the introduction of the Anti-monopoly Law ("AML") in 2008. This e-Bulletin provides a brief overview of these important developments in the field of competition law in China, as well as a brief assessment of the legal issues involved.

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