NDRC Anti Pricing Monopoly Regulations (NDRC Order 7) 反价格垄断规定 发改委令 第7号
On January 4, 2011, the National Development and Reform Commission (“NDRC”) promulgated the Anti-Pricing Monopoly Regulations ("Regulations"), which will take effect on February 1, 2011.
“Dominant Market Position” is defined in the Regulations as a position of a business operator in the relevant market that it possesses the capacity to control the price, quantity or other transaction conditions of goods, or to obstruct or affect other business operators’ entry into the relevant market.
According to the Regulations, “Pricing Monopoly Acts” include:
(1) business operators reach a price monopoly agreement; and
(2) a business operator that has a dominant market position uses pricing means to eliminate or restrict competition.
Competing business operators are prohibited from concluding following agreements:
a). agreements that fix or change the price level of goods (including services);
b). agreements that fix or change the range of price;
c). agreements that fix or change the commissions, discounts or other charges that affect prices;
d). agreements under which an agreed price is used as the basis for transactions with third parties;
e). agreements that specify a standard formula for the calculation of prices;
f). agreements that specify that prices shall not be changed without the consent of the other business operators that are parties to the agreement;
g). agreements that fix or change prices in a disguised mean; and
h). other price monopoly agreements as determined by the State Council.
Business operators are prohibited from concluding following agreements with their counterparties:
a). agreements that fix the price at which goods are resold to a third party;
b). agreements that limit the minimum price at which goods are resold to a third party; and
c). other price monopoly agreements as determined by the State Council.