Min Gao Guan: Chinese Government Being Sued Under the New Anti-Monopoly Law
After 13 years on the drawing board, the Anti-Monopoly Law passed by the Standing Committee of the National People’s Congress, China’s top legislature, has come into effect on Aug. 1, 2008. It is viewed as a milestone of the country’s efforts in promoting a fair competition market and cracking down on monopoly activities.
However, the first anti-monopoly case filed under the new law has been dismissed by the court. Xin Hua reported on September 5th that [t]he No. 1 Intermediate People’s Court of Beijing on Thursday rejected an anti-monopoly case considered the first of its kind in China. In a first-instance trial ruling, the court cited a factor that the plaintiffs filed litigation after its validity period expired as the reason for turning down the case.
The plaintiffs were four Chinese anti-counterfeiting ventures led by Beijing Zhaoxin Information Technology Co., Ltd. The plaintiffs claimed the General Administration of Quality Supervision, Inspection, and Quarantine (AQSIQ), an industry regulator, violated two Chinese laws including the anti-monopoly law in the latter’s efforts to popularize an online network known as Product Identification Authentication and Tracking System (PIATS) Xin Hua reported.
The fact that the Chinese Government was the defendant in the very first anti-monopoly case did not surprise me. Although China is working on establishing a fair competition market economy, to date they have yet to do so. The government authorities can easily and often utilize the administrative resources to control the market in major industries in China. I believe it to be the mindset of many Chinese that a monopoly in China is equivalent to an administrative monopoly. Governments being sued in an anti-monopoly case under the new law are not by chance, and I expect to see more of the same in the very near future.
