Antitrust Law Amendment Submitted Including Significant Fine Increase and Mandatory Investigation Cooperation
[Asia Economy Reporter Kim Suhwan] Chinese competition authorities, which are strongly cracking down on monopolistic practices by big tech companies, have reportedly prepared a bill to increase the penalties for antitrust violations.
According to Xinhua News Agency, on the 19th, at the 31st meeting of the Standing Committee of the 13th National People's Congress (NPC), a draft amendment to the Antitrust Law was submitted. The draft includes provisions to significantly raise fines for illegal acts and strengthen penalties for the legal representatives, key responsible persons, and directly responsible individuals of businesses involved in monopolistic agreements.
The draft specifies that business operators must not abuse advantages in data, algorithms, technology, capital, or platform rules to exclude or restrict competition.
It also includes provisions that business operators must not collude with other operators in monopolistic agreements or provide substantial assistance for other operators' monopolistic agreements.
Furthermore, it defines acts of 'abuse of market-dominant position' as those where operators with market dominance use data, algorithms, technology, and platforms to create 'barriers' in the market or unfairly restrict other businesses.
Additionally, the draft clearly states that the State Council's antitrust law enforcement agencies must strengthen reviews of operators in sectors such as livelihood, finance, science and technology, and media in accordance with the law.
Xinhua also reported that the draft stipulates the obligation of relevant institutions or individuals to cooperate when antitrust enforcement agencies conduct investigations into competition-restricting acts.
Moreover, the draft includes provisions allowing antitrust enforcement agencies to conduct 'Wetan (約談, reserved interviews)' with representatives of businesses or administrative agencies suspected of illegal acts.
Wetan is a form of 'disciplinary meeting' where government agencies summon supervised companies or institutions to reprimand and demand corrective actions.
Under the banner of 'common prosperity,' the Chinese government has imposed astronomical fines on Alibaba, China's largest internet company, and Meituan, an online food delivery platform, for violations of the Antitrust Law this year. This is interpreted as the government intensifying crackdowns on unfair competition practices by large IT companies.
Meanwhile, according to Chinese media reports on the 19th, the State Administration for Market Regulation (SAMR) plans to allocate more than half of the 33 newly hired civil servants at its headquarters this year?18 personnel?to the antitrust department, thereby strengthening enforcement capabilities in the antitrust field.
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