The 35th meeting of the 13th National People's Congress Standing Committee voted on June 24 to revise the Anti-Monopoly Law, which will come into force on August 1, 2022. This is the first revision of the Anti-Monopoly Law since its implementation in 2008, for the purpose of keeping a fair competition order and improving a unified, open, competitive and orderly market system.

Regarding monopoly agreements, first, the rules for identification of the vertical monopoly agreements have been improved. For the vertical monopoly agreement reached between the operator and the counterparty, where the operator can prove it does not involve the effect of exclusion or restricting competition, it will not be prohibited. Second, the safe harbor rule for monopoly agreements has been added. For the vertical monopoly agreement reached between the operator and the counterparty, where the operator's market share is lower than the prescribed standard and is eligible for other relevant requirements, it will not be prohibited. Third, provision that operators shall not organize other operators to reach a monopoly agreement or provide substantial assistance for other operators to reach a monopoly agreement has been added.

With regard to the concentration of undertakings, first, the investigation and handling process for the concentration of undertakings without meeting the declaration standards have been improved. For the concentration of undertakings not conforming to the declaration standards with evidence to prove that it has or may have the effect of exclusion or restricting competition, the Monopoly Control Authority of State Council may request operators to declare, where operators refuse to declare, they will be under investigation in accordance with law. Second, the “clock-stop” system for examination period based on the demands of examination for the concentration of undertakings has been added. Third, the Monopoly Control Authority of State Council has been requested to improve the examination system for the concentration of undertakings according to classification and grades, strengthen the examination of the concentration of undertakings in the essential fields related to national welfare and the people’s livelihood under the law, improving the quality and efficiency of the examination.

From XINHUANET

June 24th, 2022