China Issues New Anti-Monopoly Rules and Procedures on Pricing Conduct

INTRODUCTION

On December 29, 2010, China's National Development and Reform Commission ("NDRC"), one of the three agencies responsible for enforcing China's Anti-Monopoly Law ("AML"), issued new Anti-Price Monopoly regulations ("APM Rules") that clarify the type of price agreements and pricing behavior prohibited by the AML. The NDRC also issued Administrative Enforcement Procedural regulations ("AEP Rules") that illuminate the procedures and practices that will apply to investigations and proceedings related to anticompetitive pricing conduct. Both the APM Rules and AEP Rules become effective on February 1, 2011.

On January 7, 2011, another China antitrust agency, the State Administration for Industry and Commerce ("SAIC"), issued three regulations that clarify the circumstances under which non-price agreements and conduct may violate the AML. We will send a separate client alert that summarizes the key provisions of these new regulations in the near future.