The Anti-Monopoly Law of China () is the main legal statute that regulates
competition law
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
in the People's Republic of China. The
National People's Congress passed it in 2007 and it came into effect on 1 August 2008.
The Anti-Monopoly Law provides a basis for investigating unreasonable
intellectual property licensing fees.
History
China's first comprehensive
antitrust
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
law was the Anti-Monopoly law which was passed in 2007 and became effective in 2008.
In June 2022, the final version of the revised Anti-Monopoly Law (AML) was released by the Standing Committee of the National People's Congress (NPCSC) of China. It specifically targets anti-competitive behavior facilitated by the application of technology, significantly increases the maximum fines for violations, and aims to prevent abuses by administrative organizations.
Enforcement
Before 2018, regulatory power for enforcing the Anti-Monopoly Law was split between the
Ministry of Commerce A Ministry of Trade and Industry, Ministry of Commerce, Ministry of Commerce and Industry or variations is a ministry that is concerned with a nation's trade, industry and commerce.
Notable examples are:
List
*Algeria: Ministry of Industry and M ...
(which regulated mergers), the
National Development and Reform Commission (NDRC) (which conducted antitrust investigations), and the
State Administration for Industry and Commerce
Prior to March 2018, the State Administration for Industry and Commerce (SAIC; ) was the authority in the People's Republic of China responsible for advancing legislation concerning the administration of industry and commerce in the People's Repub ...
(which also conducted antitrust investigations).
Regulatory duties overlapped, and there was bureaucratic competition between these government bodies.
In 2018, the
State Administration for Market Regulation was created, and it became China's primary antitrust regulator.
It continues to have some overlap of responsibilities with the NDRC and the Ministry of Industry and Information Technology.
Qualcomm
In February 2015, the
National Development and Reform Commission (NDRC) completed an investigation into
Qualcomm
Qualcomm () is an American multinational corporation headquartered in San Diego, California, and incorporated in Delaware. It creates semiconductors, software, and services related to wireless technology. It owns patents critical to the 5G, 4 ...
, finding that they violated the Anti-Monopoly Law by imposing unreasonable requirements for
patent licensing.
The fine imposed on Qualcomm was equivalent to US$975 million.
See also
*
Law of the People's Republic of China
*
360 v. Tencent
''360 vs Tencent'' is a dispute between two Chinese IT companies, Tencent and Qihoo, over competition practices that has escalated in November 2010, and hundreds of millions of users were forced to choose sides in the dispute. It is the first ant ...
References
{{Competition law by country
Chinese business law
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...