Monopoly companies punished to promote fair competition

The State Administration for Market Regulation on Tuesday penalized the Yunnan branch of the China National Aviation Fuel Group for suspected monopolistic behavior, by confiscating 10 million yuan ($1.54 million) of its funds and imposing a fine of 2.3 million yuan on it for abusing its dominant market position.

On Monday, the market regulator had said that it was reviewing the merger of power bank rental companies Soudian and Jiedian, and has launched an investigation against Meituan, a shopping platform and rental service provider, for failing to report its acquisition of bicycle sharing company Mobike.

Such measures will promote fairer market competition and encourage enterprises to invest more in innovation and development. At a recent meeting, the authorities said that strengthening anti-monopoly policies to promote fairer competition is essential for the development of a socialist market economy. They also said the government will create a level playing field, expand the development space for all market entities, especially small and medium-sized enterprises, and better protect the rights and interests of consumers.

The implementation of the AntiMonopoly Law in 2008 has curbed monopolistic behaviors in the market. And the implementation of supporting laws and regulations in the following years has prompted the authorities to intensify their crackdown against monopolies.

The rapid development of the platform economy in China and the emergence of new business models have promoted high-quality economic development while meeting people’s ever-growing needs for a better life. However, some new monopolistic behaviors have emerged, such as platforms requiring businesses to make an either-or choice, and using big data to analyze customers’ preferences. Also, some platforms have failed to report to the authorities all their undertakings in accordance with the law. Such actions undermine fair market competition, harm the legitimate rights and interests of consumers, and are not conducive to stimulating innovation and creativity.

Through stricter law enforcement, China has demonstrated its resolve to establish fair market access and fair competition supervision systems, a fair competition review mechanism, and an improved law system to ensure fair competition. Protecting fair market competition and innovative development should be the starting point of the anti-monopoly work. And by lifting unnecessary market entry barriers, creating an open and inclusive market environment, and stimulating the innovation capacity of market players, the authorities can help domestic enterprises become more competitive in the international market.