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More pricing compliance work for companies

New anti-pricing monopoly rules released

Issue: February 2011

Keywords (click to search): pricing compliance AML Broad Bright

Companies must carry out a more extensive compliance review of their pricing policies and decision-making corporate executives should be mindful of their conduct, say counsel.

The National Development and Reform Commission (NDRC) published its detailed rules regulating price monopolies and related enforcement policies on January 4. The Anti-price Monopoly Provisions (国家发展和改革委员会反价格垄断规定), which will go into effect on February 1, governs pricing conduct including price-fixing agreements, abuse of dominant market position, and the imposition of penalties.

The effect of the new provisions means that companies are expected to do more compliance work.

“For companies, including FIEs [foreign-invested enterprises], to be brought into line with the new rules, a comprehensive compliance review of their pricing policies is needed,” said...

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