The State Administration for Market Regulation promulgated the "Rules for the Handling of Fair Competition Review and Reports"

Rules for the handling of fair competition review reports

Article 1: These Rules are formulated in accordance with the Anti-Monopoly Law of the People's Republic of China, the Regulations on Fair Competition Review, and other relevant provisions, so as to do a good job in handling fair competition review reports and strengthen supervision and safeguards for fair competition review work.

Article 2: Any unit or individual may report suspected violations of policy measures provided for in the "Fair Competition Review Regulations" to the market regulation departments.

"Violations of the "Regulations on the Review of Fair Competition" as used in the preceding paragraph includes the following circumstances:

(1) The relevant policy measures do not perform the fair competition review procedures, or the performance of the fair competition review procedures is not standardized;

(2) The relevant policy measures have content that violates fair competition review standards;

(3) Other violations of the "Regulations on the Review of Fair Competition".

Article 3: The State Administration for Market Regulation is in charge of the nation's efforts to review and handle reports on fair competition, and is to supervise and guide local departments for market regulation in their efforts to handle reports on fair competition.

Local market regulation departments at the county level or above are responsible for the handling of fair competition review and reports within their respective administrative regions, and are to supervise and guide the work of lower-level market regulation departments in handling fair competition review and reports.

Article 4: The departments for market regulation shall follow the principles of lawfulness, fairness, and efficiency in handling fair competition review reports.

Article 5: The departments for market regulation at the county level or above are responsible for handling reports on the policies and measures of the relevant units of the people's government at the same level and the people's government at the level below.

Where the higher-level department for market regulation finds it necessary, it may directly handle fair competition review reports that are within the authority of the lower-level department for market regulation.

Article 6: Where the market regulation departments that receive reports do not have the authority to handle them, they shall inform the informant to submit them directly to the market regulation departments that have the authority to handle them.

Article 7: The departments for market regulation shall disclose the telephone number, mailbox, or email address for reporting to the public.

Article 8: Informants shall be responsible for the veracity of the content of the report. The content of the report generally includes:

(1) The informant's basic information;

(2) the drafting unit of the policy measures;

(3) The specific circumstances and reasons why the policy measures are suspected of violating the "Fair Competition Review Regulations";

(4) Whether the same facts have already been reported to other organs, or whether an administrative reconsideration has been applied for or an administrative lawsuit has been filed in the people's court for a specific administrative act taken in accordance with the policy measure.

Where informants make a report in a manner other than in writing, the staff of the departments for market regulation shall make a record.

Article 9: After receiving the reporting materials, the departments for market regulation shall do a good job of registration, accurately recording information such as the main matters reflected in the reporting materials, the informant, and the date of receipt.

Article 10: After receiving a report, the departments for market regulation shall promptly organize and carry out a verification of whether the policies and measures reflected in the report violate the provisions of the "Regulations on the Review of Fair Competition".

Where laws, administrative regulations, or local regulations are suspected of having issues affecting fair market competition, the departments for market regulation shall transfer them to the relevant units for handling in accordance with relevant laws and regulations.

Where it is reported that the policy measures that have not yet been introduced are suspected of violating the provisions of the "Regulations on the Review of Fair Competition", the market regulation department may transfer it to the relevant drafting unit for handling.

Article 11: In any of the following circumstances, the departments for market regulation are not to handle reports:

(1) It does not fall under the circumstances provided for in Article 2 of these Rules;

(2) The report has already been verified and handled, and the informant makes a repeated report on the same facts or reasons;

(3) An application for administrative reconsideration has been made for a specific administrative act and the policies and measures on which it is based, or an administrative lawsuit has been filed with a people's court and has been accepted or handled;

(4) The reporting materials are incomplete or unclear, and upon request by the departments for market regulation they have not been supplemented and corrected within 7 working days, or there is still no way to determine the direction of the reporting materials after supplementing and correcting them;

(5) Other situations where reports are not to be handled.

Article 12: The departments for market regulation carrying out verifications may request that the drafting unit, the lead drafting unit, or the drafting organ provide the following materials:

(1) The text of the policy measures and the drafting instructions;

(2) Solicitation of opinions on policy measures;

(3) The conclusion of the fair competition review;

(4) An explanation of whether the policy measures violate the provisions of the "Regulations on the Review of Fair Competition";

(5) Other materials that need to be provided for carrying out verification.

Article 13: Where the following circumstances are verified to exist, it is a failure to perform or non-standard performance of the fair competition review procedures:

(1) The policy measures are within the scope of fair competition review, but no fair competition review has been carried out;

(2) The relevant unit asserts that a fair competition review has been carried out, but does not provide supporting materials;

(3) The provisions of Article 12 of the "Regulations on Fair Competition Review" are applied, but are not detailed in the review conclusion;

(4) The policy measures fall under the circumstances provided for in article 14 of the "Regulations on Fair Competition Review", but have not been sent to the market regulation departments to carry out fair competition review;

(5) Failure to hear the opinions of relevant parties in accordance with article 16 of the "Regulations on the Review of Fair Competition", except as otherwise provided by law;

(6) Failure to make a conclusion on a fair competition review, or where the conclusion is unclear;

(7) Other violations of fair competition review procedures.

Article 14: Where the following circumstances are verified to exist, it is a violation of fair competition review standards:

(1) The policy measures contain the prohibited content provided for in articles 8 through 11 of the "Regulations on Fair Competition Review" and do not comply with the provisions of article 12;

(2) Applying the policy measures provided for in Article 12 of the "Fair Competition Review Regulations", and after verification it is found that they do not meet the applicable circumstances provided for in Article 12 (1) to (4) of the "Fair Competition Review Regulations";

(3) Applying the policy measures provided for in Article 12 of the "Regulations on the Review of Fair Competition", and after verification, it is discovered that there were other alternatives that had a smaller impact on fair competition at the time the document was issued;

(4) Applying the policy measures provided for in article 12 of the "Regulations on Fair Competition Review", failing to determine a reasonable implementation period or termination conditions, or failing to stop implementation in a timely manner after the implementation period expires or the termination conditions are met;

(5) Other situations that violate fair competition review standards.

Article 15: During the verification process, the departments for market regulation may hear the opinions of relevant departments, business operators, industry associations, and chambers of commerce on the impact of relevant policies and measures on fair competition.

Article 16: The departments for market regulation shall complete the verification within 60 days of receiving the complete reporting materials; Where the circumstances of the reported matter are complicated, it may be appropriately extended upon approval of the responsible person for the department for market regulation.

Article 17: In any of the following circumstances, the departments for market regulation may conclude the verification in any of the following circumstances after organizing verification:

(1) The relevant policies and measures do not violate the provisions of the "Regulations on Fair Competition Review";

(2) During the verification period, the relevant units take the initiative to revise or abolish relevant policies and measures;

(3) The relevant policy measures have become invalid or have been repealed.

Article 18: Where upon verification it is discovered that relevant units have violated the provisions of the "Regulations on the Review of Fair Competition", the departments for market regulation may draft and issue a "Reminder and Urging Letter" to urge the relevant units to make corrections. The "Reminder and Urging Letter" mainly includes the relevant information of receiving the report and organizing the verification, the rectification requirements and the time requirements for written feedback on the rectification situation.

The departments for market regulation may submit the following rectification requirements:

(1) Where the relevant units fail to perform or perform the fair competition review procedures in an irregular manner, they request that a fair competition review or supplement and correction procedures be carried out;

(2) Where the policy measures have content that violates the fair competition review standards, it is required to be revised or repealed in accordance with relevant procedures;

(3) Where the verification finds that the relevant units have imperfect fair competition review systems and mechanisms, etc., it is required to complete and improve the relevant systems and mechanisms.

The "Reminder and Urging Letter" may be copied to the higher-level organ of the relevant unit.

Article 19: Where relevant units violate the provisions of the "Regulations on the Review of Fair Competition", and upon the urging of the departments for market regulation, fail to provide verification materials or make corrections within the time limit, the department for market regulation at the level above may give their responsible person a talk.

Based on the actual conditions of their work, the departments for market regulation may jointly carry out admonishments with the higher-level organs of the relevant units.

The interview shall point out the relevant issues of violation of the provisions of the "Regulations on the Review of Fair Competition" and put forward clear requirements for rectification. The circumstances of the interview may be disclosed to the public.

Article 20: Where a fair competition review is not carried out in accordance with the provisions of the "Regulations on Fair Competition Review", causing a serious negative impact, the departments for market regulation may submit a recommendation to the relevant higher-level organ that the directly responsible managers and other directly responsible personnel of the relevant unit be given sanctions in accordance with law.

Where in the course of their work, the departments for market regulation discover that relevant units and their staffs are suspected of violating discipline or law, they may transfer leads on the relevant issues to the corresponding discipline inspection and supervision organs in accordance with provisions.

Article 21: Where upon verification, the market regulation departments find that the basis for formulating relevant policy measures is suspected of violating the provisions of the "Fair Competition Review Regulations", they shall report to the market regulation department at the level above that has the authority to handle it, and they are to carry out the verification in accordance with these Rules.

Article 22: Where a report leads are suspected of abusing administrative power to eliminate or restrict competition, it shall be promptly transferred to an anti-monopoly law enforcement agency with jurisdiction for investigation and handling in accordance with the "People's Republic of China Anti-Monopoly Law" and other relevant provisions.

Article 23: For real-name reports, the departments for market regulation may, on the basis of the informant's written request, give feedback on the handling of the report in accordance with law.

Article 24: The public and the news media are encouraged to conduct social oversight and public opinion oversight of conduct that violates the provisions of the "Fair Competition Review Regulations" in accordance with law.

Article 25: The departments for market regulation shall do a good job of statistical analysis of the administrative region's fair competition review and report information, and strengthen fair competition review efforts in a targeted manner.

Article 26: The departments for market regulation, relevant units, and individuals shall keep confidential state secrets, commercial secrets, and personal privacy learned of in the course of handling fair competition reviews and reports in accordance with law.

Article 27 These Rules shall come into force on October 13, 2024.

Source: Market Supervision Half Moon Salon

Editor: Zhuhai Market Supervision Team

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