On 2 December 2011, the National Development and Reform Commission (NDRC)confirmed that it had received an application for suspension of its investigation from bothChina Telecom and China Unicom. The NDRC has been investigating China Telecom andChina Unicom for alleged discriminatory pricing of network access fees.China Telecom has also submitted a plan to adjust and rectify its current practices.China Telecom has stated that it plans to expand interconnection capacity, achieveinteroperability with other backbone telecom operators, standardise network access feescharged to Internet service providers and reduce that fee to ‘a proper level’, and reduceend user broadband access charges by around 35% per bandwidth unit within fiveyears. It has been reported that the NDRC has requested that China Telecom submit arevised proposal that is more detailed and specific as its initial plan was considered to betoo vague and difficult to monitor.
The conduct of the NDRC’s investigation and the level of public discourse it hasgenerated demonstrate that China’s competition authorities are increasing their AMLcapabilities and that a general awareness of competition law is quickly developing.Unfortunately, China Telecom’s proposal appears to fail to adequately address thealleged abusive behaviour and seemingly has instead diverted attention away from thefocus of the NDRC’s investigation. This investigation will be a litmus test on how the AMLwill be applied to state-owned enterprises (SOEs) and their role in China’s regulatoryreform.
‘Experts Debate China’s Broadband Access Market and Competition Policy in Response to theOngoing Anti-Monopoly Investigation on China Telecom and China Unicom’, China CompetitionBulletin, Edition 15, November 2011, 1.
The China Competition Bulletin summarises the latest developments of competitionand regulatory policy in the People’s Republic of China, covering laws and policies, cases,agency and other relevant news, and selected publications
Professor Allan Fels, AO
Dean, The Australia and New ZealandSchool of GovernmentFormer Chairman, the Australian Competitionand Consumer Commission
email@example.comProfessor Xiaoye Wang
Institute of Law,Chinese Academy of Social SciencesGraduate University of Chinese Academy of SciencesHead of the Competition Law Committee,China Law SocietyDeputy Head of the Economic Law Section,China Law Society
firstname.lastname@example.orgDr Jessica Su
Postdoctoral Fellow, Institute of Law,Chinese Academy of Social SciencesResearch Consultant to Professor Allan Fels
In this edition
I. Cases 1-4II. News of the Anti-Monopoly Enforcement Agencies and the Courts 4-5III. Selected Publications in English 5IV. Selected Publications in Chinese 5Major Acronyms 6
A publication of the ChinaCompetition Research CentreEdition 16: December 2011
In this final edition of the China Competition Bulletin for 2011, we report on the progressof the ongoing anti-monopoly investigation of China Telecom and China Unicom and theconditional clearance of the Seagate/Samsung deal by China’s Ministry of Commerce(MOFCOM), which is the most detailed merger decision delivered by MOFCOM since the Anti-Monopoly Law (AML) became effective in August 2008. We also report on the court judgment in
Liu Dahua v Dongfeng Nissan
, a case that highlights the gaps in the AML inaddressing vertical restraints in the Chinese market.