CHINA Trends and Developments Contributed by: Li Ren (Roy), Beijing DHH Law Firm
Beijing DHH Law Firm 11/F and 12/F Tower C Beijing Yintai Centre No 2 Jianguomenwai Avenue Chaoyang District Beijing P.R. China Tel: +86 10 8540 7666 Fax: +86 10 8540 7608 Email: beijing@deheheng.com Web: www.deheheng.com
The Latest in China’s Legislation, Enforcement and Judicial Practices
(1) whether the market conduct of the undertak - ings is consistent; (2) whether there has been communication or exchange of information among the undertak - ings; (3) the market structure, competitive conditions, and changes in the relevant market; [and] (4) whether the undertakings can provide a rea - sonable explanation for the consistency of their conduct. If the plaintiff provides preliminary evidence for items (1) and (2), or items (1) and (3) above, and can demonstrate a high likelihood of concerted behaviour among the undertakings, the defend - ant shall provide evidence or a sufficient expla - nation to justify the consistency of their conduct. If no reasonable explanation is provided, the People’s Court may determine that concerted behaviour exists. A reasonable explanation, as referred to in this Article, includes instances where the undertak - ings independently implemented the conduct based on changes in market and competitive conditions. ”
Regarding Cartels Cartel legislation
On 24 June 2024, the Supreme People’s Court (SPC) issued the Interpretation on Several Issues Concerning the Application of Law in the Trial of Monopoly Civil Dispute Cases (hereinafter referred to as the Interpretation), marking a sig - nificant highlight in China’s antitrust legislative efforts for the year. This Interpretation revises the 2012 Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Civil Dispute Cases Arising from Monopolistic Conduct. It addresses new characteristics of cartel behaviour and practi - cal challenges in judicial proceedings, with key additions including the following. Clarification of burden of proof for horizontal cartels Article 18 of the Interpretation states: “When determining the existence of concerted behav - iour as stipulated in Article 16 of the Anti- Monopoly Law, the People’s Court shall com - prehensively consider the following factors:
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