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ARTICLE · 27 SEPTEMBER 2011

Chinese Antitrust Enforcement Agencies Ready to Show Teeth to Large State-owned Enterprises?

China Telecom may face huge fines under the Anti-monopoly Law

ChinaAntitrust/Competition Law
Liu Jia
Liu Jia
Sun Yiming
Sun Yiming

Most recently, the hottest  topic on China's Anti-monopoly Law (AML) is a piece of news spreading on the internet, indicating that China Telecom, one of China's largest state-owned enterprises is under antitrust investigation conducted by a "relevant" competition authority for its suspected abuse of dominance in broadband market. If the abuse is successfully established, China Telecom may face huge fines under the AML. The news is also quoted by Xinhuanet.com, an authoritative website run by the government. However there has been no formal response from China Telecom or any competition authorities so far in this respect.

This article outlines details to do with China Telecom's conduct and examines whether or to what extent such conduct would be considered as an abuse of dominance and thus in violation of the AML.

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