A New Frontier in Antitrust Enforcement: China’s Anti-Monopoly Law Effective August 1, 2008

China’s new Anti-Monopoly Law (AML) has elements of sophisticated competition regimes around the world, particularly the European Community, but vague provisions and uncertain implementation may cause some legal uncertainty for corporations doing business in China. The AML took effect on August 1, 2008 and scaled-back implementing regulations became effective August 3.

The AML creates a commission to organize, coordinate, and guide anti-monopoly activities, and grants anti-monopoly enforcement authorities (AMEAs) enforcement and investigative powers to outlaw various types of monopolistic conduct and to impose penalties in some cases. The law is not clear about which government agency will be in charge of enforcement, but many practitioners expect enforcement powers to be divided among several existing ministries, each of which will be authorized to enforce certain aspects of the law.

Substantively, the AML addresses the gamut of competition law issues—from concerted action and abuse of dominant market position to merger control and enforcement. Most notably, the AML extends its jurisdiction to any conduct outside the Republic of China that has the effect of eliminating or restricting competition in China.

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