Yintai by city supervision bureau fine 500 thousand!
The State Administration for Market Regulation announced on its official website that it has imposed administrative penalties on 10 cases of illegal concentration of business operators in the Internet sector, including Yintai Commercial (Group) Co., Ltd. ‘s purchase of New Century Commercial Co., Ltd.’ s equity. The State Administration for Market Regulation said all 10 cases violated the Anti-Monopoly Law and imposed fines of 500,000 yuan on 12 companies, including Yintai Business.
According to the administrative penalty decision published by the State Administration of Market Regulation, Yintai Commercial Company was incorporated in the Cayman Islands in 2006, mainly engaged in the operation and management of department stores and shopping centers in China, and the ultimate controller is Alibaba Group Holdings Ltd. New Century Commercial Company was registered and established in Xi ‘an City, Shaanxi Province in 1992. The original ultimate controller was Xi ‘an International Medical Investment Company Limited (hereinafter referred to as International Medical), which mainly engaged in the retail business of general merchandise in Shaanxi Province.
According to the written decision on administrative penalty, on March 31, 2018, Yintai Commercial purchased 100% equity of its wholly-owned subsidiary New Century Commercial for 3.36 billion yuan in the international medical announcement “Report on the Sale of Major Assets”, which belongs to the concentration of operators stipulated in Article 20 of the Anti-Monopoly Law. If the turnover of both parties reaches the declaration standards stipulated in Article 3 of the Provisions of the State Council on the Declaration Standards for Concentration of Business Operators, it is a case that the declaration should be made. On April 27, 2018, New Century Business completed the registration of equity change, and did not report to the Bureau before this, which violated Article 21 of the Anti-Monopoly Law, and constituted a concentration of business operators that did not report the illegal implementation according to law.
The State Administration of Market Supervision has evaluated the impact of Yintai commercial acquisition of New Century commercial equity on market competition, and concluded that this concentration of operators will not produce the effect of eliminating and restricting competition. Based on the investigation and evaluation conclusions, the bureau decided to impose an administrative penalty of RMB 500,000 on Yintai Commercial.
Nandu previously reported that on February 7, the anti-monopoly committee of the State Council formulated and released the “Anti-monopoly Guidelines on the Platform Economy”, which clarified the criteria for judging whether the relevant behavior constitutes monopolistic behavior and added contents such as preventing the disorderly expansion of capital.
On March 5, Premier Li Keqiang pointed out in his government work report that “we will strengthen anti-monopoly and prevent the disorderly expansion of capital, and resolutely maintain a fair market environment for competition.” The statement also continued the policy tone set by the Central Economic Work Conference in December.
The reporter from Nandu noted that during the NPC and CPPCC sessions this year, many deputies and members mentioned the topic of anti-monopoly and put forward suggestions on legislation and data regulation. Zhu Lieyu, deputy to the National People’s Congress and director of Guangdong Guiding Law Firm, suggested to improve China’s anti-monopoly system, clarify the identification procedures and judgment standards for all kinds of monopoly behaviors, and improve the intensity of punishment for monopoly behaviors, so as to achieve sufficient punishment and warning effect. Zhao Dongling, a deputy to the National People’s Congress, brought the “Proposal on Systemic Strengthening of Antimonopoly”, mentioning that the core of the implementation of the “Antimonopoly Law” is to prevent and stop monopolistic behavior, and it is of great significance for operators to do a good job in anti-monopoly compliance.
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