On September 7th, 2011, an antitrust litigation against Taiyuan Railway Bureau was brought to Taiyuan Xinghualing Court on the ground that Taiyuan Railway Bureau violated Anti-monopoly Law and Unfair Competition Law of PRC by its administrative omission.

The trigger for this lawsuit lands on the claim that Taiyuan Railway Bureau (“A” hereinafter) has not responded to the application from Shanxi transport Group Co., Ltd, (“B” hereinafter) of additional tickets outlet, in spite that B has been applying for the authorization since 2007.

According to the case description presented by B in the Indictment, the key points decisive to the case analysis are summarized as follow by sequence number:Continue Reading Taiyuan Railway Bureau is Sued by Private Enterprises Alleged Monopoly

 The end of 2010 leaves China’s anti-monopoly regulators with several matters to consider, resolve or improve. The anti-monopoly framework is still not well established and consumer rights issues have been badly neglected. End consumers remain at risk of manipulation by collusion between large enterprises, especially on price. Recently, an instant noodle company stopped providing its products because a supermarket chain objected to a price increase and a mobile telecommunications company, facing claims of unreasonable tariffs, refused to reveal the basis of its pricing structure.

The National Development and Reform Commission (NDRC) is in charge of price related monopoly agreements (ie, cartels), abuse of dominance and administrative monopoly issues. In comparison with the other two regulatory bodies – the Ministry of Commerce and the State Administration of Industry and Commerce (SAIC) – it remains severely understaffed. Moreover, price regulation is invariably a sensitive issue in China and often attracts criticism. The SAIC issued regulations on non-pricing-related monopoly agreements, abuse of dominance and administrative monopoly in May 2010 (for further details please see "New draft rules on monopoly agreements and abuse of dominant position"), but the NDRC has been slow to follow suit. As the world economy has started to emerge from the financial crisis, many Chinese and foreign economists have criticised distorted market prices and price mismatching in China, making the NDRC even more wary of taking action on anti-monopoly pricing issues.Continue Reading NDRC issues new anti-monopoly pricing regulations

On May 27, State Administration of Industry and Commerce (“SAIC”) published new draft regulations on monopoly agreements, abuse of dominant position and administrative monopoly for public comments. These sets of unveiled draft rules are resulted from pubic opinions and comments which SAIC has collected since June 2010, this is when SAIC first published the draft regulations. Within China’s antitrust law enforcement system, SAIC has the mandate to condemn non-price-related monopoly agreements, non-price-related abuse of dominant position and administrative monopoly. Furthermore, it has mandate to fashion implementing rules for the Anti-Monopoly Law of PRC (“AML”) too.

 Continue Reading SAIC Published New Draft Rules on Cartels, Abuse of Dominant Position and Administrative Monopoly