HowNet was punished for abusing its dominant position to implement monopolistic behavior

Alert enterprises to establish a systematic competition compliance mechanism

　　core reading

　　The HowNet monopoly case is just a typical case to warn market players that they must pay attention to competition compliance work, advocate a fair competition system and a fair competition culture through the way of cases, and promote enterprises to establish a systematic competition compliance mechanism .

　　□ Our reporter Wan Jing

　　China National Knowledge Infrastructure (CNKI for short), which has been in the vortex of "monopoly disputes" and public opinion, finally ushered in the result of punishment.

On December 26, the State Administration for Market Regulation released the findings: Since 2014, HowNet has abused its dominant position to implement monopoly behaviors, and has implemented unfairly high prices by continuously increasing service prices and splitting databases to raise prices in disguise. The behavior of its database service.

In this regard, the State Administration for Market Regulation made a penalty decision: order HowNet to stop its exclusive cooperation, not sell database services at unfairly high prices, and impose a fine of 87.6 million yuan.

　　Experts in the industry commented on this and pointed out that the CNKI monopoly case is a typical case to warn market players that they must pay attention to competition compliance. Systematic competition compliance mechanism.

Comprehensive determination of the dominant position of CNKI

　　As an academic platform, HowNet’s main business is to sell online database services to users such as universities, scientific research institutes, and public libraries, and to provide value-added services such as academic misconduct detection.

　　The State Administration for Market Regulation has determined that HowNet is jointly operated by Tongfang HowNet (Beijing) Technology Co., Ltd., Tongfang HowNet Digital Publishing Technology Co., Ltd., and "China Academic Journals (CD Version)" Electronic Magazine Co., Ltd. The three companies make joint decisions, The abuse of market dominance in this case was carried out.

　　According to the relevant provisions of the Anti-monopoly Law, how to determine the abuse of a market dominant position by a market player mainly proceeds through the following steps: define the relevant market; determine whether the operator has a dominant market position in the relevant market; Whether the abusive behavior has been engaged in without justification; analyze whether the abusive behavior has produced the consequences of excluding or restricting competition, or significantly damaged social public interests such as fair trade.

　　In the administrative punishment decision issued by the State Administration for Market Regulation, CNKI’s dominant position in the relevant market is mainly determined from the market share.

　　Judging from the market share of HowNet, it has already exceeded 50%, and has strong market power.

From 2014 to 2021, the market shares of the three companies behind HowNet are 59.95%, 58.62%, 63.27%, 66.91%, 66.99%, and 65.22% in the total service revenue of Chinese academic literature network database service operators in China. , 68.03%, 69.38%, all over 50%.

　　The HowNet database has collected more than 95% of officially published Chinese academic literature, which is the largest and most complete.

As of May 2022, HowNet has more than 20,000 institutional users and 123 million individual registered users; the parties involved cover more than 90% of university users, and the coverage rate of other types of users is more than 60%.

　　As the largest network database service provider for academic literature in China, HowNet has the ability to influence and determine key transaction conditions such as transaction prices.

From 2014 to 2021, the number of institutional users will still maintain an average annual growth rate of 2% despite the continued price increase of HowNet database services.

At the same time, institutional users generally hope to carry out long-term cooperation with the parties to maintain basically stable prices. However, HowNet basically signs contracts with a one-year limit, and raises the price when the contract is renewed, which shows that HowNet has a strong ability to control the market.

　　In addition, the Chinese academic literature network database service has multiple attributes such as intellectual property products, Internet information services, and online publishing services.

Operators entering the online database service market for Chinese academic literature within the territory of China need to obtain qualifications such as the "Online Publishing Service License" and "Electronic Publication Publishing License" before they can operate.

It is difficult for new entrants to reach a critical mass of users.

HowNet has researched and developed a series of systems or platforms around the Chinese academic literature network database service, including academic misconduct detection system, journal editing platform, etc.

Taking the academic misconduct detection system as an example, compared with other major competitive platforms, HowNet’s academic misconduct detection system has significant technical advantages, and has become a widely used detection system by domestic academic journal publishers, universities, research institutes and individual users. tool.

　　Based on a comprehensive analysis, the State Administration for Market Regulation has determined that HowNet has a dominant position in the online database service market for Chinese academic literature in China.

disrupt the normal order of competition in the market

　　Just having a dominant market position is not enough to constitute an illegal act to be cracked down by the anti-monopoly law.

However, the investigation by the State Administration for Market Regulation shows that HowNet abused its above-mentioned market dominance, limited academic journal publishers and universities to provide them with academic literature data through exclusive cooperation, and sold Chinese academic literature online database services at unfairly high prices, etc. , excluding restrictions on market competition.

　　The State Administration for Market Regulation disclosed that since 2014, HowNet has signed formatted exclusive cooperation agreements with academic journal publishers and universities, requiring academic journal publishers and universities to exclusively authorize the use of academic resources such as journals, doctoral and master's degree theses, etc. , shall not authorize other competing platforms to use, and use various means to guarantee the implementation of the exclusive cooperation agreement.

These methods include: HowNet provides services such as academic misconduct testing for free, and requires academic journal publishers and universities to implement exclusive cooperation agreements.

HowNet will pay different copyright royalties according to whether it is exclusive cooperation or not.

　　In addition, since 2014, in order to obtain excess profits and abuse its dominant market position, HowNet has implemented the sale of online database services for Chinese academic literature at unfairly high prices by continuously and substantially increasing service prices, splitting databases and raising prices in disguise. the behavior of.

For example, when the cost is basically stable, the database service price is increased beyond the normal range.

Since 2014, there have been 66 companies whose average annual price increases of more than 30% for users to purchase party database services, and 622 companies whose prices ranged from 10% to 30%.

Some users' database purchase prices in 2021 will reach several times that of 2014. Among them, 91 companies are more than 4 times higher, and 157 are higher than 3 times.

Since the main users of party database services are colleges and universities, scientific research institutes and other financial appropriation units, users have a rigid demand for party database services and weak bargaining power, so they can only compress other expenses and purchase party database services at high prices.

　　In this regard, the State Administration for Market Regulation determined that HowNet abused its dominant position in the Chinese academic literature network database service market, maintained, consolidated, and strengthened its own market dominant position through exclusive cooperation, eliminated and restricted relevant market competition, and sold at unfairly high prices Database services have harmed the legitimate interests of users, hindered the technological progress and innovative development of the Chinese academic literature network database service market, affected academic exchanges and dissemination, and destroyed a good scientific research and academic ecological environment.

　　Shi Jianzhong, a member of the expert advisory group of the Anti-monopoly Committee of the State Council and a professor at China University of Political Science and Law, pointed out that the administrative penalty decision of the State Administration for Market Regulation promptly corrected the illegal behavior of HowNet to restrict knowledge acquisition channels and increase the cost of knowledge acquisition. The improvement of database service quality and level is a necessary move to enhance the overall welfare of society.

　　Meng Yanbei, a member of the expert advisory group of the Anti-Monopoly Committee of the State Council and a professor at Renmin University of China, believes that through the CNKI monopoly case, the goal of the State Administration for Market Regulation is to maintain fair competition in the Chinese academic literature network database service market and shape my country's academic literature network. The development concept of the database service market is open, inclusive and shared.

Pay equal attention to promoting development according to laws and regulations

　　On December 26, the State Administration for Market Regulation made an administrative penalty decision for CNKI’s abuse of its dominant position in the Chinese academic literature network database service market in China, exclusion and restriction of market competition, infringement of users’ legitimate rights and interests, and destruction of a good academic ecological environment: ordered HowNet stopped illegal activities.

Including the cessation of exclusive cooperation, and shall not restrict academic journal publishers, universities, etc. from cooperating with other competitive platforms on academic resources.

Unfairly high prices shall not be implemented, and Chinese academic literature online database services shall be sold in China at fair, reasonable, and non-discriminatory prices.

　　At the same time, the three companies involved in CNKI were fined 5% of the domestic sales of 1.752 billion yuan in China in 2021, totaling 87.6 million yuan.

　　Meng Yanbei believes that this is one of the highlights of the HowNet monopoly case. The State Administration for Market Regulation insists on equal emphasis on legal regulation and promotion of development. , reduce the burden on users, and strengthen internal compliance management to carry out comprehensive rectification.

　　After the State Administration for Market Regulation made an administrative penalty decision on HowNet according to the law, HowNet formulated and disclosed 15 rectification measures in five aspects in accordance with the administrative penalty decision and combined with opinions and suggestions from all aspects of society, and promised to accept the supervision of all parties , so that the public can feel the effectiveness of anti-monopoly law enforcement.

　　Shi Jianzhong pointed out that the purpose of carrying out anti-monopoly investigations and imposing administrative penalties on HowNet is not to impose fines, but to standardize HowNet’s business operations, restore the relevant market competition order as soon as possible, fully stimulate market vitality and innovation momentum, and promote the sustainable health of the industry development, and better protect the interests of consumers and social public interests.

If administrative punishment forms a joint force with self-examination and rectification, it will receive better economic, social and legal effects.

Promoting the high-quality development of the platform economy requires not only a benign interaction between competition and innovation, but also a better combination of an effective market and an effective government.

Through the implementation of normalized anti-monopoly supervision, it is possible to effectively prevent and stop monopolistic behavior, continuously purify the competitive environment in the field of platform economy, maintain and stimulate the motivation and vitality of innovation, ensure the healthier and high-quality development of the platform economy, and better leverage the platform The positive role of the economy in promoting technological innovation and economic prosperity, facilitating people's lives, and participating in international competition.

(Rule of Law Daily)