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Introduction of the Draft Anti-monopoly Law

 
 c. Special agreements:
 1. Non-monopoly Agreements:
 1. Agreements concerning less that 10% market share;
 2. Agreement concerning issuing and distributing publications.
 2. Exemptible agreements:
 1. Agreements that can be exempted by the reasons provided by Art. 9;
 2. Agreement that can be exempted by the reasons provided by Art. 11.
 Note is taken here that there is no transparent procedure requirements, especially no time limitation, against the anti-monopoly authority to deal with the exemptions.
 
 d. Penalty
 1. Cease and desist such act,
 2. Declare the monopoly agreement void
 3. Impose fines between RMB 100,000 to RMB 10,000,000 or not exceeding 10% of the turnover in the relevant market in the preceding year
 Note: the anti-competitive law itself does not provide criminal penalty.
 
 B. Abuse of dominant position
 
 a. Definition:
 Undertakings shall not eliminate or restrict competition by the means of abuse of their dominant position, which refers to the market power enjoyed, unilaterally or collectively, by undertaking(s) by which the holder(s) can eliminate or restrict competition.
 
 b. Relevant market
 As far as abuse of dominant position is concerned, the first step is to find the relevant market which includes product dimension and geography dimension. The two dimensions are to determine the size of the relevant market where the undertaking(s) concerned situates, market structure and other factors provided by Article 14. Nevertheless, this draft does not provide us any instructions to do market analysis.
 
 c. Factors for establishing dominance
 Article 14 depicts several factors used for establishment of dominance without hierarchy. Further transparency, in particular with regard to the link between different factors, is necessary in the future. Another important issue is about the determination of collective dominance.


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