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[交流] 【Discussion】New Cracks down on Corporate Price Fixing

China's Anti-Price Fixing Law comes into force on Tuesday.
  The regulations prohibit companies with competitive relations from reaching any monopoly agreement that would allow it to fix or jointly change prices.
  Based on the new regulations, companies and their trading partners are prohibited from fixing resale prices and setting minimum resale prices. Companies with dominant market positions must not sell their products at prices below production cost, nor should they use price differential treatment to monopolize the market.
  Huang Yong, Director of the Competition Law Center at the University of International Business and Economics, says the new anti-monopoly regulation has better clarified related definitions and increased punishments for offenders.
  "For example, based on the former Price Law, violating companies faced a fine of only a few million yuan, but under the new law, they will be charged 1 percent to 10 percent of their annual revenue. For big company, 1 percent can be a huge figure and 10 percent astronomical."
  Huang says the new regulations also clarify definitions for identifying monopoly agreements.
  The Anti-Price Monopoly Regulations were enacted Tuesday along with the Anti-Price Monopoly Enforcement Rules which are designed to restrain enforcement agencies from abusing their administrative powers.
  Both are components of the 2008 Antitrust Law, viewed as a milestone in China's efforts to promote fair market competition.
  Zhang Guangyuan, Deputy Director-General of the National Development and Reform Commission, China's top economic regulator, says his agency has already investigated several cases since the Antitrust Law took effect three years ago.
  "From the cases reported, we found that price monopolies usually involve industry associations negotiating prices among their members, competitive companies reaching monopoly agreements, and companies with dominant roles in the market using price differential treatment to monopolize the market."
  Many recent comments on the govenment's decision to announce and implement the price-fixing regulations have been intended to warn businesses against raising prices during the Lunar New Year holidays, which begin on February 3rd-a time when people go on shopping sprees.

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