Abuse of Market dominance Office annual sales 1% to 10% fine

Beijing January 6 News reporter Yao Today, the State administration of Industry and Commerce issued the "Industry and commerce administrative organs prohibit the abuse of market dominance Behavior" (hereinafter referred to as the provisions) on how to identify the market dominance, abuse of the market dominance of the specific forms of the detailed provisions. Where the operator abuses the dominant position of the market, the administrative organ of Industry and commerce shall order the cessation of illegal acts, confiscate the illegal income and place a fine of 1% or above 10% in the previous year.　　This provision shall be implemented as from February 1, 2011.　　The rules first define what market dominance is.　　Anti-monopoly law stipulates that market dominance refers to the market position in which the operator has the ability to control commodity price, quantity or other trading conditions, or to hinder and influence other operators to enter the relevant market. So what does "other trading conditions" mean? "Can hinder and affect other operators to enter the relevant market" and how to identify?　　The rules are clear.　　Other trading conditions in anti-monopoly law refer to other factors, including commodity quality, payment terms, delivery mode and after-sale service, in addition to commodity price and quantity, which can have a substantial impact on market transactions.　　Can hinder, affect other operators to enter the relevant market, is to exclude other operators to enter the relevant market, or delay other operators to enter the relevant market within a reasonable period of time, or other operators may enter the relevant market, but the cost of entry is difficult to carry out effective competition in the market.　　Second, the rules define how to identify the dominant market position.　　To investigate and punish cases of abuse of market dominance, the first thing is to determine whether the operator has market dominance in the relevant market. The specified requirements include: The market share of the operator in the relevant market, and the competition of the relevant market, the operator's ability to control the sales market or the purchasing market of raw materials, and the financial and technical conditions of the operator.　　such as asset size, financial capacity, profitability, financing capacity, research and development capabilities, technical equipment, technological innovation and application capabilities, intellectual property rights, etc., the degree of dependence of other operators on the transaction, and the ease with which other operators enter the relevant market.　　The rules also define the performance of abusive market dominance practices. The dominance of the market itself is not illegal, it is only by abusing this position. Anti-monopoly law prescribes six specific abuses of market dominance.　　That is, to sell goods at an unfair high price or to buy goods at unfairly low prices, to sell goods at a price below cost, to refuse to trade, to limit transactions, to tie up or to impose unreasonable trading conditions, and to discriminate.　　In order to enhance the operability, it stipulates that the method of refusing the transaction, the way of restricting the transaction, the specific performance of tying or the conditions of the additional unreasonable transaction, and the manifestation of the Differential Treatment Act, respectively, are set up separately.　　Because of the complex and changeable economic life, any legal enumeration cannot exhaust the potential abuse of market dominance in reality. Therefore, according to the fallback clause of anti-monopoly law, it is stipulated that the SAICThe law determines that other than the price monopoly acts abuse of market dominance.