The Amended PRC Anti-Monopoly Law: Prioritizing Abuse of Dominance in Digital Markets and IP Licensing

August 12, 2022 | BY

Susan Mok

Nate Bush and Della Ding of DLA Piper and Ray Xu of Shanghai Kaiman Law Firm assess the implications for dominant firms of recent amendments to China's key anti-monopoly legislation and proposed revisions to its implementing rules.

Share:

Summary

  • China's amended Anti-Monopoly Law preserves the basic rules against abuse of dominance, but authorizes punitive fines of up to 50% of annual revenues for egregious violations.
  • The Draft Abuse of Dominance Rules, if implemented, would revise existing measures to prioritize abuse of dominance by online platform operators, including detailed rules against "self-preferencing" tactics.
  • Abuse of dominance in digital markets is a new focus under the revised law.
  • In addition, the Draft Anti-Monopoly Law IP Rules, if implemented, would revise existing guidelines to target abuses in the licensing of Standard Essential Patents, including "improper" litigation to enjoin the implementation of technical standards without a license to the underlying SEP.