China’s Anti-Monopoly Law

In January 2020, the State Administration for Market Regulation of China (SAMR) issued the revised anti-monopoly law for public consultation. It was the first time the law was revised since its implementation in 2008. In November 2020 after collating feedback from the public for the past few months, the draft guidelines in the platform economy were released. According to SAMR, the purpose of the revised law is to regulate monopolistic behaviours by e-commerce giants in China in a bid to nurture a more sustainable and healthy business environment for the platform economy. To learn more about the anti-monopoly law in China, you may sign up for economics tuition Singapore conducted by a reputable economics tutor Singapore.

Monopoly Agreements To Restrict Competition

It is explicitly stated in the guidelines of anti-monopoly law in the platform economy that monopoly agreements which ultimately result in exclusion or restriction of competitions of any form will be prohibited. There are two types of monopoly agreements, the horizontal monopoly agreements and the vertical monopoly agreements. According to the guidelines, horizontal monopoly agreements refer to the behaviours of fixing prices, market segmentation, restricted production or sales, restricted technologies or products, and boycotting transactions. Vertical monopoly agreements refer to the behaviours to manipulate resale prices. In consultation with your economics tutor Singapore in your economics tuition Singapore class, discuss the possible means to manipulate prices and trading activities on e-commerce platforms.

When conducting their investigations, the key factors that the anti-monopoly law enforcement agency would consider include market power, market competition conditions, degree of hinderance to competition, among others. Market competition is an important topic in Singapore-Cambridge GCE ‘A’ Level economics. You may read the lecture notes published by Mr Edmund Quek, principal economics tutor Singapore of Economics Cafe Learning Centre to find out more. Economics Cafe Learning Centre is a premier economics tuition Singapore centre. Founded by its Mr Edmund Quek, the best economics tutor Singapore, the economics tuition Singapore centre is conveniently located within five minutes’ walk from the Bishan MRT Station.

Dominant Market Position

Under the anti-monopoly law in China, dominant market position is defined as “a market position held by operators that are capable of controlling the prices, quantities of commodities, other transaction terms in a relevant market, or preventing or exerting an influence on the access of other operators to the market”. Typical practices adopted by e-commerce operators in China of a dominant market position include selling or buying at unfairly high or low prices respectively, restriction of access by counterparties, implementing tie-in sales or imposing different treatment on counterparties without justifiable reasons. To learn the definition of monopoly, you may consult your economics tutor Singapore in economics tuition Singapore. Mr Edmund Quek is probably the only economics tutor Singapore who offers economics lecture notes for free not only for students in his economics tuition Singapore classes, but also for other students’ benefit as well.

Jack Ma’s Ant Group was the very first to be hit by the tighter scrutiny on e-commerce giants in China. Its much anticipated US$37 billion dual listing in Shanghai and Hong Kong was abruptly suspended in November 2020, shortly after the release of the anti-monopoly law guidelines. Recently, Alibaba was ordered to pay a hefty fine amounting to over 18 billion yuan, equivalent to US$2.8 billion for abusing its market dominant position under the revised anti-monopoly law. In addition to the fine, Alibaba is also required to file self-examination and compliance reports for the next three years. In discussion with your economics tutor Singapore in your economics tuition Singapore class, explain the impact of such a hefty fine on Alibaba.

The government crackdown on e-commerce giants in China has sent many into panic mode. E-platform operators such as Tencent,, Meituan and Didi have been rumoured to be the next targets. It is reported that Ma Huateng of Tencent has been working closely with the government authorities in China in an effort to prevent a fallout for Tencent.

Linda Geng

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