Page 124 - 2017 White Paper
P. 124
7 White Paper on the Business Environment in China
2. Regulation of Illegal Acts in Current New Fields · to insert, in network application services of other
business operators, links that redirect it to other targets
(1) Adds a provision that operators may not take without consent or authorization;
advantage of their relatively dominant positions to do
unfair transactions. · to mislead, deceive or force the user to modify,
close, uninstall network application services legitimately
The Draft adds an additional Article 6, which provided by others, or prevent the proper use of such
reads, “the operators may not take advantage of their network application services; or
relatively dominant positions to do the following unfair
transactions: · to interfere or undermine the proper operation of
network application services legitimately provided by
· to restrict the transacting objects of the trading others without consent or authorization”.
counterparty without justified reasons;
The Draft adds an additional Article 16, which reads:
· to restrict trading counterparty to purchase their “Where a business operator engages in activities that
designated commodities without justified reasons; violate Article 13 of this Law, the supervision and
inspection department shall order it to stop its illegal
· to restrict the trading conditions between the act, and impose a fine of not less than 100,000 yuan
counterparty with other operators without justified but not more than 3,000,000 yuan depending on the
reasons; circumstances.”
· to overcharge or unreasonably require the trading The added Article 13 and 16 provide the acts of
counterparty to provide other economic interests; and using technological means such as software to disturb
restrict or influence other operators and users in the
· to add other unreasonable trading conditions. network field. In the judicial field, the courts usually use
principle provisions when trying cases involving unfair
‘Relatively dominant position’ in this Law refers to competition in the network field. The Draft includes these
a situation where during the specific trading process, acts as unfair competition acts from the legislative level.
one trading party is dominant with respects to funds,
technology, access to the market, marketing channels, (3) Adds a penalty regulation on acts of “providing
purchase of raw materials, etc. and the trading counter- convenient conditions to unfair competition acts”.
party is dependent on this operator and it is difficult
for this trading counterparty to transact with other The Draft adds an additional Article 18, which
operators”. reads, “where a party provides facilitation in terms of
production, sales, storage, shipping, network service,
This Article provides that the operators may not take technical support, advertisement and publicity, payment
advantage of the relatively dominant positions to do and settlement, among others to a business operator
unfair transactions. The Anti-Monopoly Law of China has whom it clearly knows or ought to know to be engaged
provisions on the acts of abusing one’s dominant market in unfair competition acts in violation of the provisions
position, this Draft deletes the parts repetitive with that of this Law, it shall be imposed a fine of not less than
of the Anti-Monopoly Law and adds the acts of using a 100,000 yuan but not more than 1,000,000 yuan in light
relatively dominant position to do unfair transactions that of the circumstances. If such a party actively cooperates
are prevalent in reality, and adds provisions on the acts of with the supervision and inspection department in its
unfair transactions by the operators who do not have a investigation by truthfully providing information or
dominant market role but have relatively dominant roles, evidence, the punishment may be lighter or mitigated”.
thus filling the relevant legal gaps.
The current law focuses on the regulation and penalty
(2) Adds provisions on unfair competition in networks. of the operators who conduct unfair competition acts,
while the Draft adds penalty regulations for acts of
The Draft adds an additional Article 13: “The operators “providing convenient conditions for unfair acts”, not only
may not use network technology or application services punishing the “principal criminal”, but also the “accessory
to do the following acts that may influence the choice of criminal”.
users or disturb the normal operation of other operators:
· to use technical means to prevent users from using
network application services of other business operators
without the user’s consent;
124
2. Regulation of Illegal Acts in Current New Fields · to insert, in network application services of other
business operators, links that redirect it to other targets
(1) Adds a provision that operators may not take without consent or authorization;
advantage of their relatively dominant positions to do
unfair transactions. · to mislead, deceive or force the user to modify,
close, uninstall network application services legitimately
The Draft adds an additional Article 6, which provided by others, or prevent the proper use of such
reads, “the operators may not take advantage of their network application services; or
relatively dominant positions to do the following unfair
transactions: · to interfere or undermine the proper operation of
network application services legitimately provided by
· to restrict the transacting objects of the trading others without consent or authorization”.
counterparty without justified reasons;
The Draft adds an additional Article 16, which reads:
· to restrict trading counterparty to purchase their “Where a business operator engages in activities that
designated commodities without justified reasons; violate Article 13 of this Law, the supervision and
inspection department shall order it to stop its illegal
· to restrict the trading conditions between the act, and impose a fine of not less than 100,000 yuan
counterparty with other operators without justified but not more than 3,000,000 yuan depending on the
reasons; circumstances.”
· to overcharge or unreasonably require the trading The added Article 13 and 16 provide the acts of
counterparty to provide other economic interests; and using technological means such as software to disturb
restrict or influence other operators and users in the
· to add other unreasonable trading conditions. network field. In the judicial field, the courts usually use
principle provisions when trying cases involving unfair
‘Relatively dominant position’ in this Law refers to competition in the network field. The Draft includes these
a situation where during the specific trading process, acts as unfair competition acts from the legislative level.
one trading party is dominant with respects to funds,
technology, access to the market, marketing channels, (3) Adds a penalty regulation on acts of “providing
purchase of raw materials, etc. and the trading counter- convenient conditions to unfair competition acts”.
party is dependent on this operator and it is difficult
for this trading counterparty to transact with other The Draft adds an additional Article 18, which
operators”. reads, “where a party provides facilitation in terms of
production, sales, storage, shipping, network service,
This Article provides that the operators may not take technical support, advertisement and publicity, payment
advantage of the relatively dominant positions to do and settlement, among others to a business operator
unfair transactions. The Anti-Monopoly Law of China has whom it clearly knows or ought to know to be engaged
provisions on the acts of abusing one’s dominant market in unfair competition acts in violation of the provisions
position, this Draft deletes the parts repetitive with that of this Law, it shall be imposed a fine of not less than
of the Anti-Monopoly Law and adds the acts of using a 100,000 yuan but not more than 1,000,000 yuan in light
relatively dominant position to do unfair transactions that of the circumstances. If such a party actively cooperates
are prevalent in reality, and adds provisions on the acts of with the supervision and inspection department in its
unfair transactions by the operators who do not have a investigation by truthfully providing information or
dominant market role but have relatively dominant roles, evidence, the punishment may be lighter or mitigated”.
thus filling the relevant legal gaps.
The current law focuses on the regulation and penalty
(2) Adds provisions on unfair competition in networks. of the operators who conduct unfair competition acts,
while the Draft adds penalty regulations for acts of
The Draft adds an additional Article 13: “The operators “providing convenient conditions for unfair acts”, not only
may not use network technology or application services punishing the “principal criminal”, but also the “accessory
to do the following acts that may influence the choice of criminal”.
users or disturb the normal operation of other operators:
· to use technical means to prevent users from using
network application services of other business operators
without the user’s consent;
124
