Antitrust Developments in the PRC in 2014

Mar 24, 2015

CPI Asia Column edited by Vanessa Yanhua Zhang (Global Economics Group) presents:

Antitrust Developments in the PRC in 2014 – Michael Han & David Boyle¹ (Fangda Partners)

Introduction

In 2014, China’s Anti-Monopoly Law (“AML”) entered its seventh year. After a number of years building up the enforcement agencies and gaining experience, the direction of China’s competition regime is becoming clearer. In particular, 2014 saw an increase in the number of high profile antitrust investigations being launched as well as the introduction of a new simplified merger review procedure. While there is still room for improvement in terms of transparency of investigations and due process, more legal rules have been recently published, especially in respect of procedural rules.

This article provides a summary of the key legislative and enforcement developments under the AML over the past 12 months and examines the likely consequences these changes will have for companies doing business in China.

China’s antitrust agencies and their enforcement record in 2014

Before delving deeper into the Chinese antitrust authorities’ activities in 2014, it is useful to provide a brief introduction to the various authorities and their competences. Unlike other jurisdictions, China does not have an independent and unified antitrust enforcement agency. There are three regulatory authorities that enforce the AML at the national level: the National Development and Reform Com