Reform and Innovation Create a New Situation of Anti-monopoly Work
Interview with Gan Lin, Deputy Director of the State Administration for Market Regulation, Director of the State Anti-Monopoly Bureau, Secretary-General of the Anti-Monopoly Commission of the State Council
The Central Economic Work Conference requested that the implementation of fair competition policies be further promoted, anti-monopoly and anti-unfair competition should be strengthened, and fair competition should be ensured through fair supervision.
On November 18, 2021, the State Anti-Monopoly Bureau was listed.
This institutional adjustment provides a strong organizational guarantee for further improving the anti-monopoly system and mechanism, and doing a good job in anti-monopoly work.
What is the background and main content of the adjustment of anti-monopoly law enforcement agencies?
What are the current challenges for anti-monopoly supervision and enforcement?
How to implement the requirements of the Central Economic Work Conference, deepen the implementation of fair competition policies, and strengthen anti-monopoly and anti-unfair competition?
The reporter interviewed Gan Lin, deputy director of the State Administration for Market Regulation, director of the State Anti-Monopoly Bureau, and Secretary-General of the Anti-Monopoly Commission of the State Council.
The General Administration of Market Supervision added the “National Anti-Monopoly Bureau” brand, and established the Competition Policy Coordination Department, the Anti-Monopoly Enforcement Department, and the Anti-Monopoly Enforcement Department. The division of labor is responsible for anti-monopoly-related work, and at the same time, it establishes a competition policy and big data center to strengthen anti-monopoly , Competition policy theoretical research and technical support
Reporter: In recent years, anti-monopoly law enforcement agencies have undergone several reforms.
Could you please introduce the historical evolution of the anti-monopoly law enforcement agency, as well as the background and main content of this agency adjustment?
Gan Lin: When my country’s “Anti-Monopoly Law” was implemented in August 2008, the National Development and Reform Commission, the Ministry of Commerce, and the former State Administration for Industry and Commerce were responsible for anti-monopoly law enforcement. Concentrating on anti-monopoly review, the former State Administration for Industry and Commerce was responsible for anti-monopoly law enforcement in addition to monopoly agreements, abuse of market dominance, and abuse of administrative power to exclude and restrict competition.
In February 2018, the Third Plenary Session of the 19th Central Committee of the Party made the deployment of strengthening and optimizing the government's anti-monopoly functions.
In accordance with the “Deepening Party and State Institutional Reform Program” and the decision on the State Council’s institutional reform program, the State Administration for Market Supervision was established to be responsible for unified anti-monopoly law enforcement. It integrated the anti-monopoly duties of the National Development and Reform Commission, the Ministry of Commerce, and the former State Administration for Industry and Commerce, and eliminated The previous problems of overlapping responsibilities and different enforcement standards have optimized the anti-monopoly enforcement system and improved the effectiveness of anti-monopoly enforcement.
In December of the same year, in accordance with the Anti-Monopoly Law, the General Administration of Market Supervision authorized the market supervision and management departments of the people’s governments of provinces, autonomous regions, and municipalities to be responsible for anti-monopoly law enforcement within their respective administrative regions, and established a central and provincial level responsible for optimization, coordination and efficiency. Anti-monopoly law enforcement system.
Entering a new stage of development, implementing new development concepts, building a new development pattern, and promoting high-quality development have put forward higher requirements for building a unified national market and protecting fair competition.
In March and August of this year, General Secretary Xi Jinping gave important instructions on strengthening the anti-monopoly supervision power and enhancing the authority of supervision at the ninth meeting of the Central Finance and Economics Commission and the 21st meeting of the Central Comprehensive Deepening Reform Committee.
With the great attention of the Party Central Committee and the State Council, the State Administration of Market Supervision added the "National Anti-Monopoly Bureau" brand, and established the Competition Policy Coordination Department, the Anti-Monopoly Law Enforcement Department, and the Anti-Monopoly Law Enforcement Department, which are responsible for antitrust related work.
At the same time, establish a competition policy and big data center to strengthen antitrust and competition policy theoretical research and technical support.
This institutional adjustment has further enriched the anti-monopoly supervision power and provided a strong guarantee for the anti-monopoly work.
During the period of "618" and "Double 11" this year, the online retail market "choose one" behavior basically stopped, and the order of market competition improved significantly
Reporter: In recent years, what work has the market supervision department mainly carried out in strengthening anti-monopoly and advancing the implementation of fair competition policies?
How effective is it?
Gan Lin: Since the institutional reform in 2018, the market supervision department has coordinated development and safety, efficiency and fairness, vitality and order, domestic and international, coordinated supervision and enforcement and system construction, coordinated online and offline integrated supervision and treated various market players equally. Strengthen anti-monopoly, deepen the implementation of fair competition policies, and protect and promote fair competition in the market.
Improve the system of fair competition policies and regulations.
Continue to improve the anti-monopoly legal system, advance the revision of the Anti-Monopoly Law, formulate five regulations including the Interim Provisions on Prohibition of Abuse of Dominant Market Positions, and publish eight guidelines including the Anti-Monopoly Guidelines in the Platform Economy Field, and amend them Promulgated the "Detailed Rules for the Implementation of the Fair Competition Review System", formulated the "Guidelines for the Implementation of the Third Party Evaluation of Fair Competition Review", improved fair competition review rules, optimized working mechanisms, and basically established an increasingly comprehensive competition legal system covering both online and offline.
Strengthen anti-monopoly supervision and law enforcement.
Focusing on key areas of people’s livelihood development such as platform economy, medicine, public utilities, building materials, automobiles, etc., 345 monopoly cases were investigated and handled, and 1,920 cases of concentration of business operators were concluded.
Continuously improve the transparency of anti-monopoly supervision and law enforcement, strengthen administrative guidance and law enforcement information publicity, publish an annual report on anti-monopoly law enforcement, and urge and guide enterprises to consciously operate in compliance with laws and regulations.
In investigating a certain pharmaceutical monopoly agreement case, the parties reached a fixed and price-fixing monopoly agreement with counterparties such as primary distributors, secondary distributors, chain pharmacies, etc., which resulted in a significant increase in drug prices and severely harmed the interests of consumers.
By imposing administrative penalties on the parties, the prices of medicines will return to the level of competition, the interests of patients will be protected, and the burden of seeking medical care will be reduced.
Maintain a unified national market.
Fully implement the fair competition review system, and abolish and revise nearly 30,000 documents that hinder the national unified market and fair competition.
Intensify anti-monopoly supervision, promptly investigate and punish designated transactions, hinder the free circulation of commodity elements, and abuse administrative power to eliminate and restrict competition.
For example, in some places, by setting conditions that hinder equal entry and exit of market entities, implementing differentiated and discriminatory preferential policies, designated transactions, etc., implement local protections and build regional barriers for investigation and punishment, and promptly correct abuse of administrative power to eliminate and restrict competition Acts to protect fair competition in the market in accordance with the law.
Reporter: What measures have the market supervision department taken to strengthen the anti-monopoly of the platform economy?
Gan Lin: In recent years, my country's platform economy has developed rapidly and has become a new driving force for economic and social development.
At the same time, the problems of platform monopoly and disorderly competition have gradually emerged, which not only bring about problems affecting fair market competition, inhibiting innovation vitality, harming the legitimate rights and interests of small and medium-sized enterprises and consumers, and impeding social fairness and justice, but even causing problems such as data security, information security, economic security, and The public interest security brings risks.
The General Administration of Market Supervision has strengthened competition supervision in an orderly manner, resolutely opposed monopoly and prevented the disorderly expansion of capital.
Improve the platform economy's anti-monopoly system and rules.
Accelerate the revision of the Anti-Monopoly Law, and the draft amendment has been submitted to the Standing Committee of the National People's Congress for deliberation.
Issued the "Guidelines for Anti-Monopoly in the Field of Platform Economy" to address difficult issues such as market definition and determination of market dominance in the field of platform economy, and anti-monopoly supervision of typical monopolistic behaviors such as "choice of two", algorithmic collusion, and big data acquaintance. Systematic regulations enhance the operability and predictability of the anti-monopoly legal system.
Investigate and punish the “choose one” behavior that is strongly reflected by the society in accordance with the law.
Investigating and prosecuting the "two-choice-one" monopoly case in the field of platform economy in accordance with the law, and issuing administrative instructions to require the enterprises involved in the case to comprehensively rectify and reform, which played an important role in preventing platform monopoly and regulating competition.
During the period of "618" and "Double 11" this year, the online retail market "choose one" behavior basically stopped, the order of market competition has improved significantly, and merchants on the platform, especially small and medium-sized business operators, have gained broader space.
Strictly review cases of concentration of platform business operators in accordance with the law, and protect a fair competitive environment conducive to innovation.
Strictly review the case of the concentration of business operators on the platform in accordance with the law, improve the efficiency of anti-monopoly review of the concentration of operators, and reduce the cost of corporate institutional transactions.
From January to October this year, the number of cases opened and closed increased by 48.7% and 50.4% compared with the same period last year. The average time for filing and closing cases was shortened by more than 1/3 compared with before the institutional reform.
Strictly review the mergers and acquisitions of platform companies to prevent "tip-and-match mergers"; order the removal of the widely criticized exclusive copyright of online music according to law, and reshape the relevant market competition pattern.
In-depth verification of clues to the illegal implementation of the concentration of business operators by platform companies, administrative penalties have been imposed on 88 cases of illegal implementation of the concentration of business operators since 2020, with a penalty amount of 60 million yuan.
Reporting is currently the main way to discover clues about problems. Anti-monopoly law enforcement agencies have adopted five measures to investigate suspected monopolistic behavior.
When determining the specific fine amount, comprehensive consideration of factors such as the nature, extent and duration of the violation
Reporter: Can you introduce the relevant procedures of anti-monopoly supervision and enforcement?
For example, the source of the clues of the problem, what measures are the main measures taken by the anti-monopoly law enforcement agencies to investigate suspected monopolistic behavior?
How to make an administrative penalty decision?
Gan Lin: From the perspective of regulatory practice, anti-monopoly law enforcement agencies mainly discover clues to monopoly cases through proactive discovery, reporting, assignment by higher authorities, transfer from other authorities, reports from lower authorities, transfer of letters and visits, and public messages based on their powers.
According to statistics, reporting is currently the main way to discover problem clues, accounting for about two-thirds of the total number of bus requests.
We have established relatively complete clue verification and processing rules, implemented closed-loop management of clues, and detected and stopped monopolistic behaviors in a timely manner.
According to the "Anti-Monopoly Law", "Administrative Penalty Law", "Regulations on Administrative Penalty Procedures for Market Supervision and Administration," etc., anti-monopoly law enforcement agencies can take the following five measures when investigating suspected monopolistic activities: One is to enter the business premises of the operator under investigation or Other relevant places are inspected; the second is to inquire the investigated business operator, interested person or other relevant unit or individual, and ask them to explain the relevant situation; the third is to consult and copy the investigated business operator, interested person or other relevant unit or Personal documents, documents, such as documents, agreements, accounting books, business correspondence, electronic data, etc.; the fourth is to seal up and seize relevant evidence; the fifth is to inquire about the operator’s bank account.
Anti-monopoly law enforcement agencies need to follow procedures to take the above-mentioned measures.
The business operators, interested parties, or other relevant units or individuals under investigation shall cooperate with the anti-monopoly law enforcement agency in performing their duties in accordance with the law, and shall not refuse or hinder the investigation by the anti-monopoly law enforcement agency.
According to the provisions of the Anti-Monopoly Law, the anti-monopoly law enforcement agency shall consider the nature, extent and duration of the illegal act when determining the specific fines.
The anti-monopoly law enforcement agency conducts a comprehensive, objective and fair investigation of suspected monopolistic activities in accordance with the law, forms an investigation report, proposes administrative punishment recommendations, and makes administrative punishment decisions after following the procedures of case review or legal review, reporting for approval, and notification of administrative punishments in accordance with the law.
The anti-monopoly law enforcement agency fully protects the parties’ rights of statement, defense, hearing, etc., to ensure that the facts of the case are clear, the evidence is conclusive, the determination is accurate, the handling is appropriate, the procedures are complete, and the procedures are legal.
The "Anti-Monopoly Law" that is currently being revised will further improve the anti-monopoly-related systems and legal responsibilities, increase penalties for monopolistic behavior, and strengthen the authority and effectiveness of anti-monopoly.
Enter a new stage of development, implement new development concepts, build a new development pattern, promote high-quality development, and put forward higher requirements for anti-monopoly supervision and enforcement
Reporter: What are the main challenges facing the current anti-monopoly supervision and enforcement?
Gan Lin: After more than 40 years of rapid development of reform and opening up, my country has become the world's second largest economy, a domestic super-large-scale market has been formed, and the socialist market economic system with Chinese characteristics is becoming more and more perfect.
With the rapid economic development, the substantial expansion of market entities, and the accelerated integration of online and offline markets, the scale of enterprises and industrial concentration continue to increase, the co-opetition relationship and the degree of competition of market forces have undergone profound changes, and the risks of monopoly and competition disorder in some areas have gradually emerged.
Enter a new stage of development, implement new development concepts, build a new development pattern, and promote high-quality development, and put forward higher requirements for anti-monopoly supervision and enforcement.
The fair competition system needs to be further improved.
In recent years, my country's anti-monopoly legal system has been continuously improved, but there are still problems such as relatively principled regulations and insufficient penalties for certain monopolistic behaviors.
In particular, with the rapid development of the digital economy, new industries, new business forms and new models emerge in an endless stream, competition methods are quite different from traditional economies, and the impact of competition behavior is more complicated. There is an urgent need to further improve the relevant anti-monopoly legal system.
The effectiveness of anti-monopoly supervision needs to be further improved.
Anti-monopoly involves a wide range of areas, and the supervision and law enforcement are policy-oriented, professional, and technical.
At present, my country’s anti-monopoly supervision and enforcement is continuously advancing in depth, which has played a positive role in protecting fair competition in the market, safeguarding consumer interests and social public interests. However, there are also insufficient regulatory professional technical support, regulatory capabilities to be further improved, and regulatory coordination to be Further enhance and other issues.
It is necessary to coordinate the promotion of online and offline integration, pre-event, mid- and post-event full-chain supervision, accelerate the establishment of a comprehensive, multi-level, and three-dimensional supervision system, continue to improve the quality of anti-monopoly supervision law enforcement teams, accelerate the promotion of technological empowerment, and comprehensively apply relevant laws and regulations. Regulatory tools to continuously improve the effectiveness of anti-monopoly supervision and enforcement.
The culture of fair competition needs to be further cultivated.
In the 13 years since the implementation of the "Anti-Monopoly Law", Chinese companies have significantly improved their awareness of fair competition, the competition compliance management system has been continuously improved, and the concept of fair competition in the whole society has been continuously enhanced. However, there is still a certain gap compared with the requirements for achieving high-quality development.
It is necessary to further strengthen the awareness of fair competition and guide the whole society to form a market environment that advocates, protects and promotes fair competition.
Reporter: What are the considerations for the next step of anti-monopoly work?
How to implement the requirements of the Central Economic Work Conference, deepen the implementation of fair competition policies, and strengthen anti-monopoly and anti-unfair competition?
Gan Lin: At the 21st meeting of the Central Deep Reform Commission, General Secretary Xi Jinping put forward clear requirements for strengthening anti-monopoly and deepening the implementation of fair competition policies, pointing out the direction for anti-monopoly and providing fundamental follow-up.
We must thoroughly study and implement the spirit of General Secretary Xi Jinping’s important instructions, implement the spirit of the Sixth Plenary Session of the 19th Central Committee of the Party and the Central Economic Work Conference, give full play to the anti-monopoly function, and be a good builder of a fair competition system and a protector of fair market competition. , Defender of consumer interests, defender of the national unified market, promoter of trade and investment liberalization and facilitation.
Improve the anti-monopoly legal system and further strengthen the foundation of the rule of law.
Promote the acceleration of the revision of the Anti-Monopoly Law, continue to improve supporting legislation, continue to improve the market access system, fair competition review mechanism, digital economy fair competition supervision system, and prevent and stop the abuse of administrative power to exclude and restrict competition.
Strengthen anti-monopoly supervision and law enforcement, and further maintain the order of fair competition in the market.
Continue to standardize competition in key areas such as platform economy, technological innovation, information security, and people's livelihood protection, and strictly investigate and punish monopoly agreements and abuse of market dominance in accordance with the law.
Continue to strengthen the anti-monopoly review of the concentration of undertakings to prevent "tip-and-a-point mergers and acquisitions" and disorderly expansion of capital.
Improve the monitoring, evaluation and early warning system of market competition, and strengthen the research, judgment, and identification and early warning of the risks of monopoly and competition disorder.
Strengthen competition legal system and policy publicity training, enhance policy transparency and predictability, and urge enterprises to improve their awareness and capabilities for compliance.
Optimize the anti-monopoly supervision system and mechanism to further enhance the effectiveness of anti-monopoly supervision.
Strengthen the connection between administrative law enforcement and judicial protection, market supervision and industry management coordination, competition policy and industrial policy coordination, pay attention to drawing on international experience, strengthen open cooperation, participate in global governance, and continuously improve the ability to adapt and apply international rules.
Our reporter Han Yadong