SAIC Publishes First Boycott Case: Trade Association Again In Spotlight

Introduction

According to a penalty decision published by the State Administration for Industry and Commerce (SAIC) on December 8 2015, the Guangdong Provincial Administration for Industry and Commerce (AIC) has fined local trade association Guangzhou Panyu Animation and Gaming Association (GAGA) RMB 100,000 for monopolistic conduct. This marks the first boycott case penalised by the Chinese competition enforcement agencies.

The Guangdong AIC's investigation was not triggered by third-party complaints, as is often the case; rather, the agency initiated the investigation based on a report published in Guangzhou Daily on March 13 2013. The local newspaper reported that GAGA had signed an "exhibition alliance agreement" with its 52 members. Under the alliance agreement, GAGA's members were prohibited from attending exhibitions that were unrelated to the animation and gaming industry or not approved by GAGA.