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The NDRC has recently drafted the Anti-price monopoly provisions to enhance the practicability of the Anti-monopoly law (AML). The aim of these provisions is to prevent any illegal pricing acts and price monopoly behaviour.
Both horizontal pricing monopoly and vertical pricing monopoly are prohibited in the AML. The Anti-price monopoly provisions provides further explanation and emphasis on pricing conducts by listing three types of pricing monopoly conducts: pricing monopoly, price dumping, and price discrimination.
According to the draft, businesses will face punishment if they control prices, offload their products at extremely low prices, or sell products at various prices to different consumers.
The provisions have established a quantity ceiling for the goods that are sold at either unfairly high or low prices, and provide definitions for price discrimination.
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