Highlights Of The Chinese Leniency Guidelines Published By SAMR In June 2020

In June 2020, the Anti-Monopoly Bureau of the State Administration for Market Regulation (“SAMR”) published a new book, the 2019 Compilation of Antitrust Regulations and Guidelines, which contains four previously unpublished guidelines covering the automotive sector, intellectual property rights, leniency policy, and commitments by undertakings. The Guidelines on Leniency for Horizontal Monopoly Agreements (the “Leniency Guidelines”) detail SAMR's leniency policies towards horizontal monopoly agreements (cartels) under China's antitrust law system.

Monopoly agreements by competitors are generally highly secretive, and with the exception of extreme scenarios, the parties to such agreements lack an incentive to whistle-blow to the competition authorities. SAMR's leniency policy is formulated to encourage such parties to voluntarily self-report and hand over substantive evidence, by granting them exemptions or fine reductions.