CHINA Law and Practice Contributed by: Qian Xiaoqiang, Yang Yikai and Chu Linxian, Haiwen & Partners
months from the date of receiving the decision. In addition, if the undertaking applies for admin - istrative reconsideration and is not satisfied with the outcome, it can also apply for judicial review within 15 days from the date of receiving the reconsideration outcome. For judicial review, if the undertaking is not satisfied with the judg - ment of first instance, it can appeal to a court of a higher level. Compared to the number of antitrust civil litiga - tion cases, the number of judicial reviews towards administrative decisions on monopolistic conduct is relatively low, among which the cases concern - ing cartel infringement amount to a large propor - tion. In addition, Competition Authorities were supported in all cases except those in which a final outcome has yet to be made. 5.9 Timeline of Cartel Enforcement Process According to the Provisions on the Administrative Punishment Procedures for Market Regulatory Departments, the Competition Authorities shall verify the clues of violations discovered within 15 working days of the discovery to decide whether to place the case on file, and the time period may be extended for 15 working days under special circumstances. Once the case is filed, a deci - sion shall be made within 90 days, which may be extended for 30 days due to complicated case factors or other reasons. Where a decision can - not be made after an extension, the Competition Authorities may continue the extension within a reasonable period. In practice, the duration of a cartel enforcement investigation can vary considerably depending on the complexity of the case, the availability of leads and the difficulty of the investigation. Based on the cartel enforcement practice over the past five years, the entire process – from the
case being placed on file to the issuance of the administrative decision – may take around two years on average, with the shortest lasting over 100 days and the longest exceeding 2,000 days.
6. Civil Litigation 6.1 Private Rights of Action
Any private firms and/or individuals who suffer losses attributed to a cartel infringement may bring a civil lawsuit before the People’s Court pursuant to Article 60 of the AML and Article 2 of the 2024 Judicial Interpretation. The People’s Court will accept the case if it meets the legal requirements for case acceptance. Notably, the Competition Authorities’ formal decision of the existence of a cartel infringement is not a neces - sary element for the private actions to proceed. The 2024 Judicial Interpretation further stipu - lates hierarchical and territorial jurisdiction for a private right of action against cartel infringe - ment. For hierarchical jurisdiction, the court of first instance would be (i) intellectual property courts and (ii) intermediate People’s Court des - ignated by the SPC. For territorial jurisdiction, it shall be determined in accordance with the provisions of the Civil Procedure Law and the relevant judicial interpretation on the jurisdic - tion for tort disputes, contractual disputes, etc, based on the specific circumstances of the case. Regarding the reliefs sought by the plaintiff, they typically include cessation of infringement, com - pensation of losses, etc. With the introduction of the 2024 Judicial Interpretation, the People’s Court can also order the defendant to bear the legal liability of making necessary acts to restore competition where it finds the defendant’ cease of the alleged monopolistic behaviour is insuf -
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