Procedural Regulations on the Suppression by the Administrative Authorities for Industry and Commerce of the Acts of Abusing Administrative Powers to Eliminate or Restrict Competition
Article 1
These Regulations are formulated pursuant to the Anti-Monopoly Law of the People’s Republic of China for the purpose of suppressing acts of abusing administrative powers to eliminate or restrict competition.
Article 2
Where an administrative organisation authorised by laws or regulations to perform the function of administering public affairs abuses its administrative power to eliminate or restrict competition, the authority at a higher level shall order a correction; the person-in-charge and other directly responsible personnel shall be subject to corresponding penalties according to law. The State Administration for Industry and Commerce (SAIC) and the administrations for industry and commerce of the provinces, autonomous regions and municipalities directly under the Central Government (PAIC) may make suggestions to the authority at a higher level on how to deal with the case according to law.
Article 3
Where any department under the State Council or any provincial people’s government abuses its administrative power to eliminate or restrict competition, the SAIC may make suggestions to the State Council on how to deal with the case according to law.
Where an organisation authorised by laws or regulations to perform the function of administering national public affairs abuses its administrative power to eliminate or restrict competition, the SAIC may make suggestions to the authority at a higher level of the said organisation on how to deal with the case according to law.
Article 4
Where any department under a provincial people’s government or a local people’s government below the provincial level or any of its departments abuses its administrative power to eliminate or restrict competition, the PAIC may make suggestions to the relevant authority at a higher level on how to deal with the case according to law.
Where an organisation authorised by laws or regulations to perform the function of administering local public affairs abuses its administrative power to eliminate or restrict competition, the PAIC may make suggestions to the authority administering the said organisation on how to deal with the case according to law.
Article 5
No business operator may engage in any monopolistic act on the ground of compulsion, designation or authorisation by an administrative authority or an organisation authorised by laws or regulations to perform the function of administering public affairs.
Where any business operator enters into any monopolistic agreement or abuses its dominant market position, the Regulations on Procedures of Administrative Authorities for Industry and Commerce for Investigating Cases Involving Monopoly Agreements and Abuses of Dominant Market Positions shall apply.
Article 6
Where other laws or administrative regulations have different provisions with this regulation on dealing with the abuse of administrative power by an administrative authority or an organisation authorised by laws or regulations to perform the function of administering public affairs to eliminate or restrict competition, such provisions in the other laws or administrative regulations shall prevail.
Article 7
After a PAIC, pursuant to Article 4 hereof, makes its suggestions on how to deal with the case according to law, it shall within 10 working days report the same to the SAIC for filing.
Article 8
Where any staff member of an administrative authority for industry and commerce violates these Regulations by misusing his or her powers, neglecting duties or committing graft, if it does not constitute a crime, the person shall be subject to an administrative disciplinary action. If it constitutes a crime, he or she shall be pursued for criminal liability.
Article 9
These Regulations do not apply to the suppression of the price-related acts involved in the abusing of administrative powers by administrative authorities and organisations authorised by laws or regulations to perform the function of administering public affairs to eliminate or restrict competition.
Article 10
The State Administration for Industry and Commerce shall be responsible for interpreting these Regulations.
Article 11
These Regulations shall become effective as of 1 July 2009.