Chinese Antitrust Law Coming Soon … ?

Josh Wright —  27 August 2007

It looks like, according to this report, the long-awaited Chinese Anti-Monopoly law will be passed next week and take effect August 1, 2008.  See here for my recent post on the Chinese antitrust law with links to relevant scholarship, and here for Geoff’s earlier post while visiting the Conglomerate a while back.  See also the China Business Law Blog on the NDRC’s successful challenge against the China Ramen Noodle Association under the Price Law.

UPDATE: Danny Sokol points us to Paul Jones’ translation of a Chinese newspaper report (here is a link for our Chinese readership) on the highlights of the Chinese Law.  Though I sincerely hope that something has been lost in translation here, it appears there is a prohibition on “restricting the purchase of new technology, new equipment or restrictions on the development of new technologies.”

2 responses to Chinese Antitrust Law Coming Soon … ?

  1. 

    Very helpful Brad! Thank you very much. I am especially interested to know whether the draft law itself goes any further to help distinguish those practices that exclude or restrict competition from those that do not.

  2. 

    I’m afraid there is something lost in translation.

    with respect to [prohibition on “restricting the purchase of new technology, new equipment or restrictions on the development of new technologies.”], I think one needs to heed the context of the prohibition as provided in Chinese in the news report.

    Here is the context as I see it:

    实践中,掌握知识产权的大公司常常通过强制性一揽子许可、在许可合同中附加不合理条件、利用市场支配地位收取不合理许可费等手段,限制竞争、谋求垄断,妨碍技术创新和技术进步,损害消费者权益。[copied from the link provided above]

    In practice, many large corporations with intellectual property impose a basket of compulsory, unreasonable conditions in contracts. And they utilize such unreasonable conditions and their dominant market position to charge unreasonable fees, restrict competition, attempt to monopoly, impede innovation and progress of technology, and damage consumers’ interests.

    Within that context,the drafters want to, according to the report, “prevent and prohibit the abusive conduct that excludes and/or restricts competition.” And they stated, “if these companies operate and conduct themselves within the confines of IPR laws and regulations with respect to the use of IP, the Anti-monopoly Law does not apply; but where the operators engage in abusive conducts that exclude or restrict competition, it does.”

    As you can see, there seems to be differences between the translation of Mr. Paul Jones and mine.