China (1993, 1997)
China Score = 9 Efficiency Defense: 0; Merger Efficiency: 0; Merger PI Pro D: 0 Governed by: The Price Law of the People’s Republic of China of December 29, 1997[1] (hereinafter referred to as “Price Law”), Law of the People’s Republic of China for Countering Unfair Competition of September 2, 1993[2] (hereinafter referred to as “Competition Act”).[3]
Category Subcategory Score Comment Scope Extraterritoriality 0 Remedies Fines 1 Article 40 of the Price Law allows the Commission to impose fines for violations of the Law. Prison sentences 0 Divestitures 0 Private Enforcement 3rd party initiation 1 Article 38 of the Price Law gives any person the ability to initiate proceedings for violations of the Law. Remedies available to 3rd parties 1 Article 41 of the Price Law allows consumers who have overpaid for goods to be compensated by the violator. 3rd party rights in proceedings 0 Merger Notification Voluntary 0 Mandatory 0 Pre-merger 0 Post-merger 0 Merger Assessment Dominance 0 Restriction of competition 0 Public interest (Pro D) 0 Public interest (Pro Authority) 0 Other 0 Efficiency 0 Dominance Limits access 0 Abusive acts 1 Article 6 of the Competition Act prohibits abusing a dominant position as to exclude others from competing fairly. Price Setting 1 Article 11 of the Competition Act prohibits a operator from selling his goods below cost for the purpose of its competitors. Discriminatory pricing 1 Article 14(5) of the Price Law prohibits price discrimination. Resale price maintenance 0 Obstacles to entry 0 Efficiency Defense 0 Restrictive Trade Practices Price fixing 1 Article 14 of the Price Law prohibits business operators to work collaboratively with other to control market prices. Tying 1 Article 12 of the Competition Act prohibits tying arrangements. Market Division 0 Output restraint 0 Market sharing 0 Eliminating competitors 0 Collusive tendering/bid-rigging 1 Article 15 of the Competition Act prohibits collusive tendering. Supply refusal 0 Efficiency Defense 0
- ↑ News Guangdong website, http://www.newsgd.com/business/laws/200305140333.htm
- ↑ Global Competition Forum website, http://www.globalcompetitionforum.org/regions/asia/China/ch_unf1.pdf
- ↑ In 2005 China will adopt a new competition policy with the Antimonopoly Act of the People’s Republic of China however this was not in effect for the time covered by this report.