NDRC’s Antitrust Practice
Zhou Zhigao, Wan Jiang, Feb 28, 2011
Over two years have passed since the Anti-Monopoly Law ("AML") entered into effect on August 1, 2008. According to the AML and related provisions issued by the State Council, the National Development and Reform Commission ("NDRC"), the Ministry of Commerce ("MOFCOM"), and the State Administration for Industry and Commerce ("SAIC") were all appointed as antitrust enforcement authorities in China. Among those authorities, NDRC is responsible for investigating and sanctioning price monopoly conduct in accordance with the law, including price monopoly agreements and abuses of a dominant market position by companies, or abuses of administrative powers to eliminate or restrict competition.
Within NDRC, the Department of Price Supervision has assumed responsibilities for antitrust policy and enforcement. At the same time, in accordance with the related provisions of the AML, NDRC has already delegated powers to the price authorities at the provincial level throughout the country. This delegation allows the provincial authorities to carry out the anti-price monopoly enforcement work within their respective administrative jurisdictions in accordance with the provisions of the AML, and to cooperate with NDRC in their anti-price monopoly investigations. Thus, a two-level anti-price monopoly enforcement system has been established at the national and provincial level.
In addition, NDRC and the provincial departments may further delegate powers within their respective fields of authority to the price departments at a lower level of government to carry out investigations in relation to specific cases of suspected price monopoly conduct.