Economic Observer Network NewsAccording to the news of the State Administration for Market Regulation on December 6, in order to enhance the effectiveness and standardization of anti-monopoly supervision, prevent and stop monopolistic behaviors in a timely manner, protect fair competition in the market, and promote the acceleration of the construction of a unified national market, the Office of the Anti-Monopoly and Anti-Unfair Competition Commission and the State Administration for Market Regulation issued a notice on the establishment of an anti-monopoly "three books and one letter" system.
The full text of the notice is as follows:
Circular of the Office of the Anti-Monopoly and Anti-Unfair Competition Commission and the State Administration for Market Regulation on the Establishment of the Anti-Monopoly "Three Books and One Letter" System
Market Supervision Bureaus (departments and commissions) of all provinces, autonomous regions, municipalities directly under the Central Government and the Xinjiang Production and Construction Corps:
In order to enhance the effectiveness and standardization of anti-monopoly supervision, to prevent and stop monopolistic conduct in a timely manner, to protect fair competition in the market, and to promote the acceleration of the establishment of a unified national market, on the basis of the "Anti-Monopoly Law of the People's Republic of China", the "Administrative Punishment Law of the People's Republic of China" and other laws and regulations, the establishment and improvement of anti-monopoly "three books and one letter", namely, the "Reminder and Urging Letter", "Notice of Interview", "Notice of Case Filing and Investigation", and "Administrative Punishment Decision (Business Entity) Administrative Recommendation (Administrative Organ)" The relevant matters of the system are notified as follows:
1. Reminder and urging letter.
In any of the following circumstances, the State Administration for Market Regulation or the Office of the Anti-Monopoly and Anti-Unfair Competition Commission may issue a "Reminder and Urging Letter" to remind and urge the prevention and rectification of relevant issues:
1) Where business operators are at risk of engaging in monopoly agreements or abusing their dominant market position, or industry associations are at risk of organizing business operators in their own industry to reach monopoly agreements;
2) The undertaking has the risk of illegally implementing the concentration of undertakings such as failing to make a declaration in accordance with law, violating the review decision, etc.;
3) There is a risk that the business operator will not fully perform the obligation to suspend the investigation or the request for administrative punishment and rectification;
4) Administrative organs and organizations authorized by laws or regulations to have public affairs management functions (hereinafter collectively referred to as administrative organs) are at risk of engaging in conduct that abuses their administrative power to eliminate or restrict competition, or where the implementation of a fair competition review system is not in place;
5) Relevant units or individuals do not actively cooperate with the review and investigation carried out by the State Administration for Market Regulation in accordance with law;
6) The local market regulation departments are not in place to perform their duties to review anti-monopoly and fair competition, or their work is advancing slowly;
7) Other situations that need to be reminded and urged.
The relevant business operator or administrative organ shall, on the date of receipt of the "Reminder and Urging Letter", report the implementation situation in writing to the State Administration for Market Regulation or the Office of the Anti-Monopoly and Anti-Unfair Competition Commission within the prescribed time. If the implementation of relevant work requirements is not in place or relevant measures are not taken to rectify within the time limit, the State Administration for Market Regulation or the Office of the Anti-Monopoly and Anti-Unfair Competition Commission will order rectification within a time limit, or take measures such as interviews and investigations in accordance with the law.
2. Notice of interview.
In any of the following circumstances, the State Administration for Market Regulation or the Anti-Monopoly and Anti-Unfair Competition Commission may issue a Notice of Interview to interview the legal representative or responsible person of the business operator or administrative organ and require him to propose improvement measures:
1) Reminders and urgings have not been corrected within the time limit or are not in place;
2) Where business operators are suspected of engaging in monopoly agreements or abusing their dominant market position, or where industry associations are suspected of organizing business operators in their respective industries to reach monopoly agreements, causing public opinion or causing a negative impact, or where it is necessary for them to propose improvement measures;
3) Relevant units or individuals are suspected of refusing or obstructing the review and investigation carried out by the State Administration for Market Regulation in accordance with law;
4) Where an administrative organ is suspected of abusing administrative power to eliminate or restrict competition, or where the implementation of a fair competition review system is not in place, causing public opinion or causing a negative impact;
5) Where local market regulation departments are not performing their duties to review anti-monopoly or fair competition in place, or where work is progressing slowly, causing public opinion or causing other negative impacts;
6) Other situations that require a meeting.
The party being interviewed shall, within the prescribed time from the date of being interviewed, report the improvement measures in writing to the State Administration for Market Regulation or the Office of the Anti-Monopoly and Anti-Unfair Competition Commission. Where the party being interviewed fails to make corrections within the time limit, the corrections are not in place, or problems arise again after the corrections, the State Administration for Market Regulation is to take measures such as filing a case for investigation against the relevant business operators in accordance with law;For relevant administrative organs, measures such as filing a case for investigation, notifying the relevant higher-level organ or discipline inspection and supervision organ, and submitting a recommendation for serious handling in accordance with laws and regulations, are to be employed in light of the circumstances.
3. Notice of case filing and investigation.
In accordance with the relevant laws and regulations, if there is evidence preliminarily proving the existence of the following circumstances, the State Administration for Market Regulation shall file a case in accordance with the law and issue a Notice of Case Filing and Investigation to the parties:
1) Where undertakings engage in monopoly agreements or abuse of dominant market positions, or where industry associations organize undertakings in the same industry to reach monopoly agreements, and within the statutory time limit for imposing administrative penalties;
2) Where a business operator engages in illegal implementation of a concentration of undertakings such as failing to make a declaration in accordance with law, violating a review decision, or so forth;
3) Relevant units or individuals have refused or obstructed the review and investigation carried out by the State Administration for Market Regulation in accordance with law;
4) Where an administrative organ has abused its administrative power to eliminate or restrict competition;
5) Other circumstances provided for by laws and regulations.
4. Administrative Punishment Decision (Business Entity) Administrative Proposal (Administrative Entity).
In accordance with the relevant laws and regulations, where there are any of the following circumstances after filing and investigation, and there are indeed illegal acts that should be subject to administrative punishment, the State Administration for Market Regulation shall make an administrative punishment decision in accordance with law, draft an Administrative Punishment Decision, and serve it on the parties in accordance with law, and the parties shall perform within the time limit specified in the Administrative Punishment Decision:
1) Where undertakings conclude or implement monopoly agreements, organize other undertakings to conclude monopoly agreements, or provide substantial assistance to other undertakings in reaching monopoly agreements, abusing their dominant market position, or industry associations organizing undertakings in their own industry to reach monopoly agreements;
2) Where a business operator engages in illegal implementation of a concentration of undertakings such as failing to make a declaration in accordance with law, violating a review decision, or so forth;
3) Refusing to provide relevant materials or information, or providing false materials or information, or concealing, destroying, or transferring evidence, or otherwise refusing or obstructing the investigation in the review and investigation carried out by the anti-monopoly law enforcement agency in accordance with law.
Where after filing a case and investigation, an administrative organ has abused its administrative power to eliminate or restrict competition, the State Administration for Market Regulation may draft an Administrative Recommendation and submit a recommendation to the relevant higher-level organ for handling it in accordance with law. The administrative organ shall report the relevant corrections in writing to the State Administration for Market Regulation.
Establishing and improving the anti-monopoly "three books and one letter" system is an important measure to enrich the means of anti-monopoly supervision, enhance the effectiveness of anti-monopoly supervision, and standardize anti-monopoly regulatory behaviors. All localities should formulate their own anti-monopoly "three books and one letter" system in light of the actual situation and in accordance with the work requirements set forth in this circular, and earnestly implement it. **The Office of the Anti-Monopoly and Anti-Unfair Competition Commission and the State Administration for Market Regulation will strengthen the follow-up and supervision of the establishment and implementation of the anti-monopoly "three books and one letter" system, and promote the implementation of the system.
**Office of the Anti-Monopoly and Anti-Unfair Competition Commission, State Administration for Market Regulation.
November 29, 2023.