Clifford Chance
Antitrust in China and across the Region - Quarterly Update, October to December 2020
18 March 2021
Key points of interest include the following:
The key development last quarter was the publication in China of draft antitrust guidelines for the platform economy. Many other jurisdictions are also considering how to refine or extend antitrust enforcement in the technology sector, but what makes China significant is that it has up to date largely tolerated the growth of significant internet businesses and that the introduction of these draft guidelines coincides with a number of enforcement actions and an immediate and significant impact on the share price of Chinese technology stocks. The draft guidelines cover a range of issues, but key points include exclusive dealing (in particular the "one from two" policy which require suppliers not to use competing platforms), refusal to supply and a tougher approach to mergers.
In other China news, there was a fall in merger activity, but continued enforcement of gun-jumping with a further six failure to file decisions (including three against technology companies); interim merger guidelines which, amongst other things, allow SAMR to authorise provincial level agencies to conduct merger reviews; further guidance and enforcement in relation to active pharmaceutical ingredients; updated foreign investment rules; and a Supreme Court judgment confirming that antitrust disputes are arbitrable in China.
Outside mainland China, Hong Kong brought its first abuse of market power case; settled an investigation into the joint operation of four terminals within Hong Kong's port; and issued the first director disqualification order; Singapore consulted on changes to its competition guidelines aimed primarily at enhancing enforcement in digital markets; Japan brought two bid-rigging cases; and in Australia, Epic Games filed proceedings against Apple relating to Apple's refusal to allow app developers to provide app stores to iOS users; Google's proposed remedies for its acquisition of Fitbit were rejected (but that acquisition has subsequently closed anyway); Facebook is facing court proceedings for misleading consumers in relation to a data protection app; and criminal proceedings were brought against a supplier of active pharmaceutical ingredients in relation to alleged cartel conduct.
