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Anti-Monopoly Bureau of SAMR to Protect Fair Competition and to Support Resumption of Work After Lockdown Due to Coronavirus (COVID-19) Pandemic

11.05.2020
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A basic condition for enterprises to resume production smoothly is to maintain a market condition that fair competition is guaranteed. The Antimonopoly Bureau of SAMR has actively performed its duties, and made every effort to maintain a fair market environment, to provide strong support for the resumption of work.

Optimise Workflow to Facilitate Enterprise Anti-Monopoly Filling

Based on the needs of epidemic control, the Antimonopoly Bureau issued a notice on February 5th timely, Adjusting the Reception and Other Works During the Epidemic Control Period (No. 6 of 2020), to adjust the relevant reception arrangements for enterprise registration, anti-monopoly review, special equipment licensing, measurement license, certification and approval of the relevant work during the epidemic control period. It also clarified that anti-monopoly review conducts off-site, the filer can send the declaration materials and the electronic version of the supplementary questions to the mailbox of the anti-monopoly bureau, in case it is not convenient for online processing. Also, the relevant documents such as acceptance notice, supplementary document list, filing notice and review decision will be served via the e-mail or fax of the contact that filled in the declaration material.

Improve efficiency and reduce institutional transaction costs

The Antimonopoly Bureau perfects the methods of supervision via tele-conferences, e-mails and other methods, maintains high-frequency of interaction with enterprises; communicates and solves relevant problems in merger review timely; improves the efficiency of case acceptance and review, all of which ensure that the case review is not affected by the epidemic control and reduce the institutional transaction cost of enterprise. Since February 3, the Antimonopoly Bureau has accepted 37 merger declarations, filed 45 cases and concluded 45, with an average of 2 cases concluded every working day, helped to smooth the progress of merger and acquisition transactions and the resumption of production.

Strengthen the front service and respond to enterprise’s demands timely

Measures that strengthen the front service and respond to enterprise’s demands include: publishing advisory telephone number at the website of the SAMR; providing compliance guidance and advisory services for enterprises, having accepted enterprise telephone consultation for more than 60 times; answering questions from enterprises timely and patiently; discussing problems and solutions jointly; helping to solve merger declaration, fair competition and other legal issues; paying close attention to the dynamics of public opinion, guiding the Market Supervision Bureau of Sichuan Province with reporting to the media on the issue of investigating takeaway platforms; enhancing the timeliness, relevance and effectiveness of anti-monopoly enforcement, protecting fair competition in the market, and promote the sustained and healthy development of enterprises.

Actively play a role in maintaining the price stability of relevant drugs

The Antimonopoly Bureau resolutely implement President Xi Jinping's requirement: "Epidemic is the order, control is responsibility", and continues to strengthen anti-monopoly enforcement in the field of active pharmaceutical ingredient (API) and pharmaceuticals, and urges the provincial market regulators to speed up the investigation and prosecution of cases in the field of API and pharmaceuticals; urgently verifies the clues reported and found, special attention pays to the price of API and pharmaceuticals related to the treatment of the COVID-19.

Protect fair competition and create a good environment for the future development of enterprise

During the epidemic control period, the Antimonopoly Bureau made efforts to create a level playing field for the resumption of production and the development of economy and society. First, the Antimonopoly Bureau continues to strengthen and improve antitrust enforcement. It conditionally approved Danish’s acquisition of GE Healthcare's biopharmaceutical business. It made decisions on two cases, namely: 1, the driver-training-service monopoly agreement case in southwest Guizhou; 2, the monopoly agreement case of the13 concrete enterprises in Hangzhou, the total fine amounted to 7.47 million RMB. It continues to strengthen the anti-monopoly enforcement in public utilities and other fields, to investigate and punish in 13 cases on abuse of administrative power to exclude and restrict competition, such as the transaction restriction imposed by Zhuzhou Municipal Transportation Bureau.

Second, the Antimonopoly Bureau presses ahead with key legislative work. It studies and summarizes all aspects of feedbacks on the draft anti-monopoly law, and puts forward a revised and improved scheme. The Bureau published the draft amendment on the Interim Measures for Concentration Review in the website of Chinese Government Legal Information and openly solicits comments, with the aim of improving the merger review system.

Third, the Antimonopoly Bureau fully implement the fair competition review institutions. It builds a network work platform, urges and guides all regions and departments to create a good market environment for enterprises to resume work, which are in accordance with the Notice of the SAMR and Other Four Departments on the Clean-Up of Policy Measures that Impede the Uniformity of Market and Fair Competition (State Antimonopoly (2019) No. 245.