Anti-Monopoly Guide on Industry Associations
ISSUING AUTHORITY:
The Anti-Monopoly and Anti-Unfair Competition Committee of the State Council
DATE OF ISSUANCE：
January 12, 2024
EFFECTIVE DATE：
January 12, 2024
In order to prevent and stop industry associations from engaging in activities prohibited by the Anti-Monopoly Law of the People's Republic of China (the Anti-Monopoly Law), give full play to the positive role of industry associations in promoting the healthy and sustainable development of industry norms and maintaining the order of market competition, and guide industry associations to strengthen the construction of anti-monopoly compliance, the Anti-Monopoly and Anti-Unfair Competition Committee of the State Council ( the Committee) formulated and promulgated the Anti-Monopoly Guide on Industry Associations (the Guide) in accordance with the provisions of the Anti-Monopoly Law and other laws.
There are 26 articles in the Guide, which further refines the identification standards for illegal acts and strengthens the construction of anti-monopoly compliance of industry associations. The main contents are as follows:
1. Articles 1 to 3 of the Guide are general principles that clarify the purpose and basis of the Guide and the concept of the industry association, put forward the general requirements for the anti-monopoly supervision of the industry association, and emphasize that the industry association shall strengthen the self-discipline of the industry, guide the business operators in the industry to compete in accordance with the law, operate in compliance, maintain the order of market competition, and not violate the provisions of the Anti-monopoly Law to engage in behaviors of excluding and restricting competition.
2. Articles 4 to 15 of the Guide specify the specific circumstances under which the industry association may violate the Anti-Monopoly Law including: industry associations organize business operators of the industry to engage in monopoly agreements; industry associations act as business operators to engage in monopoly agreements, abuse of dominant market position and conduct illegal concentration of business operators; industry associations authorized by laws and regulations administer public affairs abusing administrative power to exclude and restrict competition. In view of the main forms of industry association's violation of the Anti-Monopoly Law, that the industry associations organize the industry operators to engage in monopoly agreements, the Guide distinguishes horizontal monopoly agreement and vertical monopoly agreement, the two types of monopoly agreements.
3. Articles 16 to 22 of the Guide direct industry associations to strengthen anti-monopoly compliance construction, emphasize that industry associations shall self-discipline according to law, improve compliance awareness, strengthen compliance construction, and prevent compliance risks. Industry associations shall guide business operators in the industry to compete and operate in compliance with law. The Guide explains the compliance management system, monopoly risk identification and control, internal reporting mechanism, communication and consultation, member compliance guidance, cooperation investigation, and interview, etc.
4. Articles 23 to 24 of the Guide specify legal liability and considerations. The anti-monopoly law enforcement agency shall consider the nature, extent, duration of the illegal acts, the situation of eliminating the consequences of the illegal acts, the role played by the industry association, the role played by the business operator, the implementation of the monopoly agreement and other factors when determining the legal liability. The Guide specifies the circumstances of leniency, mitigation and severe punishment, and stipulates the relevant circumstances of credit punishment.
5. Articles 25 to 26 of the Guide decide the collaborative supervision and interpretation. It is emphasized that relevant governmental agencies shall strengthen cooperation, supervision, and co-governance.
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