Do you need legal advice regarding antitrust laws in China? We have attorneys in Beijing that can tell you about China’s national laws.
The lawyers can design a strategy to make sure you don’t get caught up in an antitrust probe. Do not assume that since you are a small to medium-sized company, you won’t get in trouble.
Our lawyers can help regardless of which Chinese city you are headquartered in. You can see some of our attorneys further down in this article. Fill out the form on the side of the page to speak to a lawyer.
There are a number of issues that the new rules hit on. One of the issues is exclusively clauses. This forces certain companies into certain arrangements.
Jack Ma has been pushing for changes in China. This could be seen as a warning shot. You should get a lawyer to review any information you publish that might cause controversy.
Antitrust Regulators In China
There are also talks about fixed pricing, which often happens in a monopolistic situation. Further, the new China antitrust laws touch on the sharing of consumer data.
These new antitrust laws also prevent companies from selling at a loss to their own market share. This creates an unfair advantage for companies that can raise money.
Companies without funding cannot afford to sell at a loss. All companies in China need to plan.
It’s not just antitrust laws. The laws in China are changing all the time. You need a lawyer to provide legal advice.
Companies like JD.com, Alibaba, and Tencent are running China. And the government is not willing to give up control of the economy.
Can you imagine raising capital, growing your brand, and then having to sell off parts of your business? If you are successful, you want to be able to cash out.
You need to set up your company in China in the correct way. Do it correct from the start, and save millions of dollars in legal fees in the future.
There are a number of enforcement agencies in China that will investigate different competitive practices. This can include:
- abuse of dominant market position
- unfair competition
- intellectual-property abuses
- monopolistic behaviour (even for small companies)
- merger reviews
- Compliance with competition law
- competitive practises that restrict competition
Anti-Competitive Legal Advice For Antitrust Laws China
Enforcement agencies investigate small and medium companies all the time. But let’s talk about the investigation into antitrust laws violations that are making public headlines. The investigation into Alibaba China.
The enforcement agency in China is called China’s State Administration of Market Regulation.
Alibaba is being investigated in regards to it’s “Ants” company IPO. Ant is the name of the company that runs Alipay.
Alipay is one of the ways that most Chinese people make payments. The other is called WeChat pay.
Speaking With Antitrust China Enforcement Agencies
The Ant’s IPO was going to be a large one, over thirty billion dollars. Recently, tech companies and companies that work with financial transactions are coming under investigation.
The likely reason is that companies like Alibaba are becoming more powerful than the Chinese government. If you are in a sensitive industry area, you need to manage your political risk.
Maybe your company collects tons of data? The Chinese government is going to want to watch you closely. If the government bans you, you can go from $50m/year revenue to $0 very quickly.
Fair Competitive Practices In China
Alibaba got in trouble because they force many companies and individuals to use their platforms. They might own different e-commerce companies, and you must pick one of them.
The possible fine amount could equal ten’s of billions of dollars. This is possibly a way for the Chinese government to get a cut of Alibaba’s profits.
It also reminds Alibaba (and other companies) who is in charge. It’s Beijing that is in charge, not Jack Ma.
In 2020, new antitrust laws in China came into effect. If your business is doing over $2 million in sales per year in China, you need to know these laws.
China State Administration Risk Management
Alibaba, Baidu, and Tencent run the Chinese market. These new laws will likely see these companies break up into small companies.
The Chinese government helped these companies grow. They did this by keeping out competitors from other countries. These competitors included Amazon (Alibaba), Facebook (Tencent), Visa (Alipay/WeChat Pay), and Google (Baidu.)
These new laws came into effect when Jack Ma said he was going to take on the regulators. Mr Ma also said comments about the Chinese government regulators.
Our guess is that China wants to show that their enforcement agencies have the power, not Jack Ma.
You can contact us for help regarding the following:
- Anti-competitive legal advice
- Help with the market economy
- Speaking with enforcement agencies
- Fair competitive practices
- Dealing with allegations of abuse of dominant market position
- Legal advice for anti-monopoly law
- State administration risk management
- Intellectual property lawsuits
- Dealing with anti-monopoly enforcement
- Signing a monopoly agreement with the enforcement agencies
- Setting up foreign companies
- Advice for competition law
In conclusion, reach out to us if you want to hire a law firm in China. We have attorneys that know antitrust laws in China.
Author: Alistair Vigier, Clearway Law CEO