China (1993, 1997)

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Score = 8

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 Article 40.
Prison Sentences 0
Divestitures 0
Private Enforcement 3rd Party Initiation 0 Article 38 of the Price Law only gives a right to report “acts of violation of price law”, but doesn’t necessarily initiate a proceeding.
Remedies Available to 3rd Parties 1 Article 41 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 an operator from selling his goods below cost for the purpose of excluding 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 from working collaboratively with one another to control market prices.
Tying 1 Article 12 of the Competition Act prohibits tying arrangements; Article 14(5) of Price Law also prohibits tying
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

References

  1. News Guangdong website, http://www.newsgd.com/business/laws/200305140333.htm
  2. Global Competition Forum website, http://www.globalcompetitionforum.org/regions/asia/China/ch_unf1.pdf
  3. 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.