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| Written by Lynn Sum | |||||||||||
| 2008-08-01 | |||||||||||
Page 5 of 9
Article 16: Association of industry shall be prohibited to organize undertakings to conduct monopoly activities being prohibited by this law. Chapter 3: Abuse of a Dominant Market Position Article 17 Undertakings of a dominant market position shall not abuse their dominant market positions to conduct following conducts: (i) sell commodities at unfairly high prices or buy commodities at unfairly low prices; (ii) sell commoditiews at prices below cost without legitimate reasons; (iii) refuse to trade with counterparty without legitimate reasons; (iv) require its counterparty to trade exclusively with it or trade exclusively with the appointed undertakings without legitimate reasons; (v) tie products or require as unreasonable conditions for trading without legitimate reasons; (vi) apply dissimilar prices or other transaction terms to equivalent counterparties; (vii) other conducts identified as abuse of a dominant position by antimonopoly execution authorities For the purposes of this law, “dominant market position” refers to the undertaking(s) having the ability to control the price, quantity or other trading conditions of products in relevant market, or to hinder or affect other undertakings to enter the relevant market. Article 18: The following factors will be taken into consideration in finding dominant market position: (i) market share in relevant market, and the competition situation of the relevant market; (ii) ability to control the sales markets or the raw material purchasing markets; (iii) financial status and technical conditions of the undertaking; (iv) the degree of dependence of other undertakings; (v) entry to relevant market by other undertakings; (vi) other factors related to find a dominant market position. Article 19: Undertakings that have any of the following situations can be assumed to be have a dominant market position: (i) the relevant market share of one undertaking accounts for1/2 or above; (ii) the joint relevant market share of two undertakings accounts for 2/3 or above; (iii) the joint relevant market share of three undertakings accounts for 3/4 or above. Undertakings with a market share of less than 1/10 will not be deemed as occupying a dominant market position even if they fall within the scope of second or third item. When the Undertakings assumed to have a dominant market position can prove, that they do not have a dominant market, shall not be assumed to have a dominant market position. Chapter 4: Concentration of Undertakings Article 20: A concentration refers to the following situations: (i) the merger of undertakings; (ii) the acquisition by undertakings, whether by purchase of securities or assets, of control of other undertakings; (iii) the acquisition by contact or any other means, of control of other undertakings or of possibility of exercising decisive influence on other undertakings. Article 21: A concentration falls under the notification criteria issued by the State Council, a report must be notify in advance with the antimonopoly execution authorities. Without notification the concentration shall not be implemented. |
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| Last Updated ( 2008-08-02 ) | |||||||||||
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