Prevent sharp mergers and acquisitions!The State Council: to study and formulate new conditions for the determination of unfair competition

2022-05-03 0 By

According to the “14th Five-year Plan for market Regulation Modernization” published on the government website of China on Wednesday, the government will study and formulate the identification conditions, judgment standards and punishment gradient for new types of unfair competition, and issue relevant law enforcement guidelines.The plan calls for strengthening comprehensive market supervision, improving competition law enforcement, promoting integrated regulation of online and offline markets, promoting development while standardizing market order, and enhancing innovation while maintaining fair competition.1. We will improve our regulatory capacity for anti-monopoly and anti-unfair competition in a coordinated manner.We will improve anti-monopoly and anti-unfair competition rules.We will thoroughly implement the Opinions on Strengthening Anti-Monopoly and Deepening the Implementation of the Fair Competition Policy, and improve the basic system of competition regulation.We will accelerate the revision of the Anti-monopoly Law, improve the system of anti-monopoly rules based on the Anti-monopoly Law, supported by laws and regulations and supported by anti-monopoly guidelines, and make the supporting rules more applicable.We will improve the fair competition review system.We will innovate and improve key regulatory rules and refine the criteria for determining monopoly behavior.We will improve the review system for concentration of business operators, speed up the revision of The State Council’s Regulations on Reporting Standards for Concentration of Business Operators, optimize reporting standards in a scientific way, and improve the quality and efficiency of the review.To sort out overlapping laws and regulations with the anti-unfair competition law, promote the clarification of the relationship between relevant laws and regulations, and improve the supporting implementation rules.We will improve the market competition assessment mechanism.We will establish a sound evaluation system that combines the overall market competition with that of various industries and regions, improve the framework and rules for evaluating competition, and issue evaluation reports in due course.We will improve the key guidance mechanism for anti-monopoly and anti-unfair competition law enforcement based on competition assessment, strengthen market competition assessment in key industries and sectors, timely follow up and analyze competition in specific sectors, and improve the ability to monitor and early warning risks of monopoly and unfair competition.Improve competition enforcement.We will strengthen anti-monopoly and anti-unfair competition law enforcement in key areas such as platform economy, scientific and technological innovation, information security, and people’s livelihood, and prevent the disorderly expansion of capital.We will improve the system of regular studies and judgments on monopoly and unfair competition, and make oversight more timely and targeted.We will improve the legal analysis system for anti-monopoly and anti-unfair competition law enforcement, strengthen economic analysis of major cases, and achieve scientific and precise oversight.We will strengthen coordination between competition supervision and intellectual property protection, and strengthen anti-monopoly regulations on the abuse of standard essential patents.We will strengthen competition law enforcement in public utilities, medical care and pharmaceuticals, and prevent and stop unreasonable charges, designated transactions, tie-in sales, and attaching unreasonable transaction conditions.We will strengthen oversight over misleading consumption practices such as commercial confusion, false publicity, false transactions, and illegal sales with prizes, and protect the legitimate rights and interests of business operators and consumers.Based on the characteristics of anti-monopoly law enforcement, we will innovate and improve regulatory systems and mechanisms, optimize the allocation of regulatory resources, and strengthen authorized law enforcement management.We will strengthen industry management, anti-monopoly law enforcement and judicial cohesion.We will accelerate theoretical research on anti-monopoly and anti-unfair competition and improve the capacity of experts and technical support.2. Coordinate and optimize the competitive ecology of online and offline markets.We will improve the online market supervision system.We will move faster to improve regulatory systems and mechanisms for online market access, product quality and safety, pricing, and advertising.Clarify the responsibilities of all types of subjects in the online market, and implement the responsibility of checking and supervising the qualification and commodity quality of operators on the platform.We will build a national online transaction supervision platform and improve our ability to monitor and give early warning of risks in online markets.We will promote trans-regional law enforcement cooperation for online transactions, and explore the establishment of trans-regional mechanisms such as joint meetings, notification of clues, evidence transfer, case assistance, and joint case handling.We will improve the coordination mechanism between online market supervision departments, and promote information sharing between comprehensive supervision departments and industry management departments.We will promote the development of national demonstration zones for Internet market supervision and service.Guide the orderly competition of platform economy.Improve the platform economy related market definition, market dominance determination and other analysis framework.Promote the improvement of legal norms on data collection and use management of platform enterprises and protection of consumer rights and interests.Strengthen the internal ecological governance of the platform, and urge the establishment of standard rules, data processing, and algorithm formulation of the platform enterprises.We will improve the pre-event and post-event oversight system, draw up a list of responsibilities for large platform enterprises, and establish compliance reporting and risk assessment systems.We will strengthen governance at the source and in the process, improve the convergence mechanism between market access and the centralized review system for business operators in areas such as people’s livelihood, finance, science and technology, and media, implement the legal reporting obligation of platform enterprises for mergers and acquisitions, and prevent “pint-tip mergers and acquisitions”.We will strengthen coordination between anti-monopoly and anti-unfair competition, make coordinated use of the E-commerce Law, the Advertising Law, and the Price Law, and investigate and punish monopolistic and unfair competition practices, such as “choosing one or the other,” discriminatory treatment, false publicity, excessive purchase and speculation of trust, big data fraud, and forced tie-in sales.We will strengthen integrated online and offline supervision.We will implement the statutory duties of online and offline market supervision and industry management.We will improve the working mechanism that combines centralized rectification with routine supervision, crack down on illegal activities such as counterfeit and shoddy goods, false publicity, and consumer fraud in online markets, with the focus on commodities for people’s livelihood such as food and drugs, health care products, epidemic prevention products, and products for the elderly and children, and effectively regulate the order of online marketing.Strengthen supervision of food and drug online business activities, strictly implement responsibilities of third-party platforms, ensure that online and offline catering services are of the same standard and quality, and ensure drug quality and safety.We will strengthen the capacity building of online advertising monitoring, fulfill the responsibility of advertising audit of platform enterprises, and severely investigate and punish false and illegal advertising in online and offline markets.We will improve the monitoring and investigation mechanism for pyramid schemes, improve the monitoring capacity, intensify efforts to prevent and crack down on pyramid schemes online, and strengthen market supervision over direct selling.We will standardize pricing in online markets, and severely crack down on price gouging, price collusion, and price fraud.We revised the work plan for responding to abnormal price fluctuations, improved the oversight and regulation mechanism for abnormal price fluctuations, strengthened the ability to give early warning of market price order, and stepped up efforts to prevent and deal with price irregularities.We will strengthen oversight of market order for new industries, new forms of business, and new models.We will study and formulate the identification conditions, judgment standards and penalty gradients for new types of unfair competition acts, and issue relevant law enforcement guidelines.We will promptly follow up regulation of competition in new industries, new forms of business and new models, strengthen evidence collection and verification of electronic data, and effectively prevent and solve problems such as false publicity, infringement and counterfeiting, and misleading consumption.We will closely monitor the order of competition in the “Internet plus service industry” market and promptly investigate and prosecute relevant illegal activities.Effectively curb fake and shoddy goods.Strengthen the analysis, research and judgment of the categories of fake and shoddy products and key markets, regions and links of production, sale and circulation, implement supervision responsibilities and strengthen remediation measures.We will continue to crack down on infringement of intellectual property rights and the production and sale of counterfeit and shoddy goods, and severely investigate and punish illegal acts that do not meet mandatory standards, adulterate and adulterate goods, substitute fake goods for genuine ones, substitute substandard products for qualified ones, and produce and sell products in the CCC certification catalog without a license.To the urban and rural fringe, rural areas as the focus, the eradication of fake and shoddy survival soil.We will intensify efforts to control the source of counterfeit and shoddy goods, and establish a supervision mechanism for the whole chain of production, circulation, and sale of commodities.Article source: Leju