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China Matters: Chinas Anti-Monopoly Law Enforcement Authorities Issue Long-Awaited Regulations for Implementing the Anti-Monopoly Law

April 08, 2011

By Paul Hastings Professional

In late 2010, the National Development and Reform Commission (NDRC) and the State Administration for Industry and Commerce (SAIC), two of the three key Anti-Monopoly Law Enforcement Authorities (Enforcement Authorities) in the Peoples Republic of China (PRC), formally issued five (5) long-awaited implementing set of rules in relation to the enforcement of the PRC Anti-Monopoly Law (PRC AML), which respectively address the enforcement policies against pricing monopolies and prohibition of abuse of market dominance and monopoly agreements.

All these rules were announced during the first week of 2011 and took effect on February 1, 2011. It is worth noting that the PRC AML and these implementing rules are applicable to business activities occurring both within and outside the territory of China that may have the effect of eliminating or restricting competition in the China market. Multinational companies will need to pay close attention to the implementation and enforcement of these implementing rules and review their respective PRC-related business transactions carefully to ensure compliance, in particular, when restructuring their global purchase and supply channels or entering into business collaborations or setting pricing policies.