Developments in Legislation and Practice of Prohibition of Administrative Monopolistic Conduct

By Meng Yanbei[1]


  1. Overview

Administrative monopolistic conduct is also considered conduct of abusing administrative power to eliminate or restrict competition. There are three stages in Chinese laws to regulate administrative monopolistic conduct. Stage One: regulate administrative monopolistic conduct mainly through policies and documents (1978-1992).[2] Stage Two: regulate administrative monopolistic conduct mainly through the Anti-Unfair Competition Law (“AUCL”) and Administrative Procedure Law (1993-2007).[3] In particular, Article 7 and 30 of the AUCL issued in 1993 have special provisions on administrative monopolistic conduct specifically regulating administrative monopolistic conduct as unfair competition. Stage Three: regulate administrative monopolistic conduct mainly through Anti-Monopoly Law (“AML”) and Administrative Procedure Law (2007-present). Administrative monopolistic conduct is enumerated in a special chapter of the AML in China, that completely establishes a regulating system for administrative monopolistic conduct from the aspects of purpose, principle, behavioral expression and legal duty. After the enforcement of the AML, the anti-monopoly enforcement agency issued supporting regulations one after another to specifically regulate administrative monopolistic conduct, that mainly include: Provisions on the Procedure for the Industrial and Commercial Administrations to Stop Acts of Abusing Administrative Power for Excluding or Limiting Competition issued by the State Administration for Industry and Commerce (“SAIC”) on May 26, 2009 (came into force on July 1, 2009); the Regulation on the Prevention of Conduct Abusing Administrative Powers to Eliminate or Restrict Competition issued by the SAIC on December 31, 2010 (came into force on February 1, 2011).