In December 2020, the Fujian Provincial Market Supervision Bureau conducted an investigation into the Gutian County People's Government's suspected abuse of administrative power to restrict and eliminate competition.
After investigation, on September 29, 2019, the Gutian County People's Government studied and adopted the "Notice of the People's Government of Gutian County on Printing and Distributing Six Measures for Promoting the Development of The Biological and New Pharmaceutical Industry in Gutian County" (Guzheng [2019] No. 25, hereinafter referred to as the "Six Measures"), and issued the "Six Measures" to the township (town) people's governments, subdistrict offices, and relevant units directly under the county on October 16, 2019. The "Six Measures" contain the following content to eliminate and restrict competition:
The first is to "actively support the county's drugs and medical devices to hang on the provincial pharmaceutical equipment procurement platform in a timely manner in accordance with relevant regulations." After the drugs in the county are included in the municipal drug centralized procurement catalog according to the relevant procedures, they can directly enter the procurement and use of medical institutions, and encourage medical institutions to give priority to the procurement and use of varieties in the county that have passed the consistency evaluation of the quality and efficacy of generic drugs; actively support the newly approved county-produced drugs and medical devices to be declared and hung in a timely manner in accordance with the relevant provisions of dynamic adjustment for medical institutions to purchase and use; encourage the procurement of locally produced Traditional Chinese medicine tablets. ”
The second is to "give priority to supporting biological and new pharmaceutical production and drug sales enterprises in the county to participate in the bidding of drug distribution rights in all public hospitals, health centers and outpatient clinics within the jurisdiction of the county in accordance with laws and regulations." ”
It has also been verified that when the Gutian County People's Government formulated and promulgated the Six Measures, it did not conduct a fair competition review in accordance with the requirements of the Fair Competition Review System such as the Opinions of the State Council on establishing a Fair Competition Review System in the Construction of the Market System (Guo Fa [2016] No. 34) and the Detailed Rules for the Implementation of the Fair Competition Review System (Provisional) (Fa Jia Price Supervision [2017] No. 1849).
The above conduct violates Article 37 of the Anti-Monopoly Law, which states that "administrative organs shall not abuse their administrative power to formulate provisions containing content that eliminates or restricts competition." As well as Article 9 of the Interim Provisions on Stopping the Abuse of Administrative Power to Eliminate and Restrict Competition, "Administrative organs shall not abuse their administrative power to formulate and issue rules, normative documents and other policy measures involving the economic activities of market entities, such as market access, industrial development, investment promotion, bidding and bidding, government procurement, business conduct norms, qualification standards, etc., involving market access, industrial development, investment promotion, bidding and bidding, government procurement, business conduct norms, qualification standards, etc., in the form of regulations, measures, decisions, announcements, notices, opinions, meeting minutes, etc." ", constitutes an abuse of administrative power, the elimination and restriction of competition illegal acts.
During the investigation, the parties took the initiative to take measures to stop the relevant acts, and on December 18, 2020, they issued the Notice of the People's Government of Gutian County on Abolishing the Notice of Gutian County on The Six Measures > on Promoting the Development of the Biological and New Pharmaceutical Industry ( Gu Zhengwen [2020] No. 157), voluntarily stopped implementing the relevant policy acts, and repealed the Notice of the People's Government of Gutian County on Printing and Distributing Six Measures to Promote the Development of the Biological and New Pharmaceutical Industry in Gutian County (Gu Zheng [2019] No. 25) document and is made available to the public through the government portal. Pursuant to the second paragraph of Article 19 of the Interim Provisions on Stopping the Abuse of Administrative Power to Eliminate and Restrict Competition (Order No. 12 of the General Administration), the gutian county people's government was investigated.
Source: Fair Competition Network
Publisher: China Industry and Commerce Publishing House, New Media Department (Digital Publishing Department)
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