Anti price monopoly rules

On 29 December 2010, the National Development and Reform Commission (NDRC) issued rules entitled "Rules on Anti-Price Monopoly"(rules). These are the first rules to provide further guidance in relation to the price-related prohibitions of the Anti-Monopoly Law (AML). [Note: The NDRC issued these rules in draft form for the first time in September 2009.] The rules were effective from 1 February 2011.

Broadly, the rules expand on and provide further guidance to the prohibitions against anticompetitive agreements and against an abuse of dominance within the AML.

Prohibition against anti-competitive agreements

Article 13 of the AML prohibits anticompetitive agreements or "monopoly agreements" between competing business operators. Article 13 of the AML also lists specified conduct which amounts to monopoly agreements between competitors (such as price fixing, restricting output, dividing markets and joint boycotts) which are explicitly prohibited.