Widget not in any sidebars
(2) In the case of vertical agreements, in the case of other regulatory requirements, it is in accordance with the competition law of the PRC if the supplier`s market share does not exceed 25% of the market in question in which it sells the products and the market share held by the distributor does not exceed 25% of the market in question in which it buys the products. However, on the basis of decision-making practices open to the public by the COMPETITION authorities of the PRC, there are not yet any hard-line monopoly agreements that are exempt under section 15 of the ANTI-monopoly act of the PRC. As a result, it appears that it has been difficult, if not impossible, for companies in outright monopoly agreements to demonstrate that the agreements in question can be exempted under section 15 of the ANTI-monopoly act of the PRC. The rule of reason analysis will be adopted on monopoly agreements that are not outright monopoly agreements. In applying the case analysis rule, it is necessary to take into account, among other things, the following: in order to determine whether consumers can share the benefits of an agreement, the competition authorities of the PRC check whether consumers benefit from benefits in terms of raw material prices, quality and product categories as a result of the conclusion and implementation of the agreement. 3. if the agreement is a necessary condition for the satisfaction of the circumstances; Therefore, in addition to the fines that could be imposed by the competition authorities of the PRC, the company concerned will suffer enormous harm as a result of the conclusion and/or implementation of monopoly agreements. When a competition authority of the PRC determines whether a monopoly agreement under investigation falls within one of the “circumstances” listed in section 15 of the ANTI-monopoly act of the PRC, the following factors must be taken into account: (1) For horizon monopoly agreements, if other legal requirements are met, it is in accordance with COMPETITION law of the PRC when the combined market shares of competitors in horizontal agreements are less than 15% in the market in question; However, in the absence of detailed requirements or specific compliance standards (for example. B the absence of a security protection system in the transitional provisions), it could be equally useful that, in practice, companies continue to have difficulties in ensuring compliance with the COMPETITION law of the PRC. According to the latest news, the SAMR is developing interpretations for the three sets of provisions that I hope will provide businesses with more practical and clearer compliance guidelines for monopoly agreements and other relevant issues within the three sets of provisions.