The Provisional Regulations for Prohibition of Monopoly Agreements (hereinafter the “Provisional Regulations”) promulgated by the State Administration for Market Regulation (SAMR) on July 1, 2019, as a complementary set of regulations to the Anti-Monopoly Law, will take effect on September 1, 2019. The promulgation of the Provisional Regulations is a major adjustment made to the Anti-Monopoly Law complementary regulations since the merging of the three anti-monopoly enforcement agencies. It indicates that China’s anti-monopoly law enforcement will be further strengthened, and also provides clear guidance for law enforcement by anti-monopoly enforcement agencies and anti-monopoly compliance by companies.

According to the Provisional Regulations, operators in competition are prohibited to conclude the following types of monopoly agreements on product or service prices: 1) Fix or change price levels, price fluctuation ranges, profit margins or other fees such as discounts and service charges; 2) Agree to use standard formulas to calculate prices; 3) Limit the independent pricing right of operators participating in the agreement; 4) Fix or change prices through other methods. Industry associations are prohibited from the following actions: (i) formulate or issue industry association constitutions, rules, decisions, notices, or standards with contents eliminating or restricting competition; (ii) call together, organize, or push forth operators in the industry to reach agreements, resolutions, summaries, or memorandums that with contents eliminating or restricting competition.

Source: State Administration for Market Regulation