Review № 9 of Chinese Antitrust News from the Experts of the BRICS Competition Centre
- “Temporary provisions to combat unfair competition on the Internet”
- A lecture hall has opened in Beijing to teach antitrust compliance.
- Plenary session on antitrust policy and unfair competition
- Rural Digitalization Guide 2.0
- Alibaba challenges court antitrust fine
- Collection of complaints against discriminatory legislation
- ByteDance filed a lawsuit against the law obliging it to sell TikTok
- ByteDance's Lemon8 app gains popularity in the US
- The head of the EC calls on China to reduce the export of a number of goods to Europe
- The US increased customs duties on Chinese electric cars by 4 times
- Fierce competition in the taxi market in Chinese megacities
- Chinese food delivery service Meituan enters the Saudi market
“Temporary provisions to combat unfair competition on the Internet”
SAMR has published “Temporary Regulation to Combat Unfair Competition on the Internet.” The new document is aimed at:
1) encouragement of innovation;
2) development of standards for competition on the Internet (definition of traditional and new types of unfair competition, etc.);
3) strengthening the protection of the rights and interests of consumers;
4) increasing the responsibility of Internet platforms (requirements for competitive supervision within platforms have been tightened; restrictions have been established on the abuse of advantage in data, etc.);
5) optimization of bureaucratic procedures (regulation, supervision, inspection, observation);
6) clarification of legal liability based on various laws (on combating unfair competition, electronic commerce, anti-monopoly, administrative fines, etc.).
The provisions come into force on September 1st, 2024.
Source: SAMR
A lecture hall has opened in Beijing to teach antitrust compliance.
On May 9th, the opening ceremony of the antimonopoly lecture hall took place; within its framework, SAMR will conduct lectures on antimonopoly compliance. The department held the first lecture jointly with the Ministry of Civil Administration of the People's Republic of China. At the meeting, the authorities explained to representatives of the country's industry associations the provisions of the "Antimonopoly Guidelines for Industry Associations of the Commission on Antimonopoly Policy and Unfair Competition of the State Council of the People's Republic of China."
The opening of the lecture hall is justified by the principle promoted among the departments of the PRC: “who monitors the implementation of the law, popularizes it.”
Source: SAMR
Plenary session on antitrust policy and unfair competition
A plenary meeting of the advisory group of experts of the Commission on Antimonopoly Policy and Unfair Competition of the State Council of the People's Republic of China was held in Beijing. At the meeting, it was noted that this group helps the responsible departments to fully carry out antimonopoly functions and contributes to the formation of a single national market. The head of SAMR, Luo Wen, expressed the hope that experts will clearly understand the new challenges facing the antimonopoly authorities and approach their work with maximum responsibility.
Source: SAMR
Rural Digitalization Guide 2.0
The Administration of the Central Committee for Cybersecurity and Information Affairs, together with the competent departments, has released an updated Guide to the Digitalization of Rural Areas. The plan includes the following tasks:
1) creation of smart APK;
2) digitalization of the business environment in rural areas (digital finance, new formats of doing business, etc.);
3) increasing digital literacy of the rural population;
4) digitalization of administrative and management processes in rural areas;
5) development of publicly accessible information services;
6) stimulating “green development” using digital methods.
Source: Cyberspace Administration of China
Alibaba challenges court antitrust fine
Alibaba Group filed an appeal to the Supreme People's Court of China. Previously, the marketplace JD.com won an antitrust case against its main competitor: the court decision provides compensation for damages in the amount of $141 million. Then the Supreme People's Court of Beijing ruled that Alibaba abused its dominant position and forced its suppliers to exclusive cooperation, which caused damage to business activities of JD.com. JD.com representatives commented that they are waiting for the meeting to begin as soon as possible to get a final decision.
Source: Wechat
Collection of complaints against discriminatory legislation
The Development and Reform Committee of the People's Republic of China announced the collection of appeals regarding unequal treatment of companies. Until September 30, 2024, business representatives can complain about legislative provisions that impede their development:
1) making it difficult to enter or exit the market;
2) interfering with the free circulation of factors of production (and free access to them), goods and services;
3) negatively affecting production and operating costs;
4) negatively affecting the production and operational activities of the company;
5) other unlawful administrative restrictions.
Source: Wechat
ByteDance filed a lawsuit against the law obliging it to sell TikTok
On May 7, ByteDance filed a lawsuit in the D.C. Court of Appeals. The owner of TikTok wants to challenge the law adopted on April 24th, obliging the sale of the platform to American businesses. The petition refers to the violation by the American authorities of the First Amendment to the US Constitution, which prohibits, among other things, the adoption of legislation restricting freedom of speech.
Source: Apnews, lawsuit (PDF)
ByteDance's Lemon8 app gains popularity in the US
ByteDance's Lemon8 app is designed for sharing photos and videos and has so far been popular primarily in Japan, Thailand and Indonesia. The app has been running in the US for about a year, but has only now become one of the top downloads in the App Store, surpassing Pinterest and Tinder. Probably, the strategic promotion of the application in the United States is associated with the company’s “sell-or-ban” ultimatum and the potential ban on TikTok.
Source: SCMP
The head of the EC calls on China to reduce the export of a number of goods to Europe
On May 6th, a trilateral meeting was held in Paris between Chinese President Xi Jinping, French President Emmanuel Macron and the head of the European Commission Ursula von der Leyen. Following the meeting, the head of the EC said that the European Union expects China to voluntarily reduce exports, as Chinese electric cars and steel have flooded the European market. She also added that to protect the market, the EU is ready to tighten measures against Chinese firms in the field of electric vehicles, solar panels, nuclear technologies and others if China does not reduce exports.
Source: Reuters
The US increased customs duties on Chinese electric cars by 4 times
The Biden administration has decided to increase customs duties on Chinese electric vehicles and related products. According to The Wall Street Journal, duties will increase from 25% to 100%, which will effectively block access of these goods to the American market. Duties on Chinese lithium-ion batteries and components for their production will also increase - from 7.5% to 25% - and additional payments will be introduced on a number of other goods.
Source: The Wall Street Journal
Fierce competition in the taxi market in Chinese megacities
Transport authorities in Shenzhen (Guangdong province) and Chongqing have issued warnings about oversupply and fierce competition in the taxi industry to encourage entrepreneurs to sensibly assess market conditions before entering the market. Last year, the cities of Sanya (Hainan Province), Zhuhai (Guangdong Province) and Jinan (Shandong Province) issued similar warnings.
In March, the country saw a record number of online taxi bookings, leading to a 30% increase in the number of licenses for drivers and taxi aggregators. Many drivers complain about growing workload and decreasing income, noting falling prices for taxi services.
Source: Yicai Global
Chinese food delivery service Meituan enters the Saudi market
China's largest food delivery service Meituan plans to launch its international food delivery platform in Saudi Arabia's capital, Riyadh. Meituan's global expansion shows Chinese companies are looking to grow overseas as competition intensifies in local markets and consumption declines. The entry into Riyadh, one of the region's wealthiest cities, follows on from its successful entry into Hong Kong in 2023.
Source: SCMP
