China Amends Anti-Monopoly Law: What You Need to Know
In late June 2022, the 13th National People's Congress Standing Committee adopted the First Amendments to China's Anti-Monopoly Law ("AML"). The amendments will take effect on August 1, 2022. Although the First Amendments to the AML (the "Amendments") are far from a complete overhaul of China's antitrust laws, they introduce new approaches for resale price maintenance and hub-and-spoke agreements, a market share-based safe harbor for vertical agreements, strengthened enforcement against internet platforms, a "stop-the-clock" mechanism in merger review, a new criminal violation, and increased fines and broadened liability for violations, among others.
This Jones Day White Paper details how key changes to the AML could impact businesses operating in China. Among the most significant changes, the Amendments harmonize previously inconsistent rules related to resale price maintenance and introduce a safe harbor for agreements in the vertical supply chain. The Amendments, together with the establishment of the State Anti-Monopoly Bureau in November 2021, indicate that China will continue to ramp up its antitrust enforcement.
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