First-step analysis: dominance in China – Lexology

General framework

Legal framework

What is the legal framework in your jurisdiction covering the behaviour of dominant firms?

The Anti-Monopoly Law of China (AML) (promulgated on 30 August 2007 and effective as of 1 August 2008) is the main legislation governing the behaviour of dominant firms.

On 26 June 2019, the State Administration for Market Regulation (SAMR), the anti-monopoly enforcement agency in China, issued the Interim Provisions on the Prohibiting Acts of Abuse of a Dominant Market Position (the Interim Provisions on Abuse of Dominance). The Interim Provisions on Abuse of Dominance not only clarify the substantive rules of abuse of dominance set forth in article 17 of the AML, but also provide detailed rules regarding the administrative enforcement.

In addition, the Provisions on the Prohibition of the Abuse of Intellectual Property Rights to Eliminate or Restrict Competition issued on 7 April 2015 by the State Administration for Industry and Commerce (SAIC, the predecessor of SAMR) touch the issue of abuse of dominance.

Definition of dominance

How is dominance defined in the legislation and case law? What elements are taken into account when assessing dominance?

Definition of dominance under the AML

According to article 17 of the AML, ‘for the purposes of this Law, “dominant market position” refers to a market position where an undertaking can control the prices or volume of commodities or other trading conditions in a relevant market, or can obstruct or affect other undertakings’ capability to enter into a relevant market’. This definition is fundamental in