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Clifford Chance

Clifford Chance

Briefings

Antitrust in China and across the region: Quarterly Update July to September 2017

19 October 2017

Key points of interest include the following:

  • In China, MOFCOM's caseload continues to rise – 107 decisions, which is 24% up on the same quarter last year. MOFCOM also took its second conditional decision of 2017 -  Brocade's acquisition of Broadcom, cleared with behavioural conditions that included putting in place a firewall, ensuring operability, continuing existing terms and agreeing not to engage in any tying or bundling.  Separately, MOFCOM also imposed two more fines for failure to notify, in each case the fine was RMB 150,000 (approximately USD 23,000)
  • After a quiet start to the year, China's other enforcement agencies also showed signs of increased activity, with NDRC and its provincial agencies, imposing fines in three price fixing cases and one abuse of dominance case, as well as finding that two public agencies had abused their administrative power. All cases involved domestic entities and included fines totalling RMB 457 million (approximately USD 69 million) on 18 PVC manufacturers.  This quarter also saw SAIC's competition bureau gain a new head as Yang Hongcan moved over from the Consumer Protection Bureau. One of his first tasks will be to assess a complaint lodged against Apple for abuse of dominance.
  • Outside China, there was continuing enforcement across the region, including Hong Kong's second case brought before Tribunal in respect of a price fixing and market sharing agreement in the context of a residential building renovation.  New merger rules are expected in Vietnam and the Philippines and Australia has included an effects test in its market power provisions, so aligning its approach with jurisdictions such as the EU and Singapore.

 

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