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The Central Economic Work Conference has proposed proactively developing the digital economy. Currently, regular oversight of the platform economy is receiving significant attention. Regarding the anti-monopoly supervision for the concentration of business operators, what measures has the SAMR taken to conduct regular oversight? Thank you.

Xu Lefu:

Thank you for your question. The SAMR attaches great importance to the regular oversight of the platform economy, actively planning high-quality measures to support its development. Regarding the anti-monopoly supervision for the concentration of business operators, we are steadily advancing the routine regulatory approach of ensuring pre-compliance, conducting mid-process reviews and implementing post-accountability measures to promote high-quality development of the platform economy.

The term "pre-compliance" entails promoting adherence to regulations in advance with an emphasis on ensuring enterprises to shoulder due responsibilities. We have emphasized enhancing enterprises' compliance awareness and released a guideline on anti-monopoly compliance for the concentration of business operators. We have also established routine communication mechanisms with platform enterprises, taking proactive steps to assist businesses in their compliance operations. We have observed, in recent years, platform enterprises, particularly major platform enterprises have greatly enhanced their compliance awareness. They have commonly established internal anti-monopoly compliance systems and dedicated appropriate human resources to this endeavor. Currently, due to the substantial increase in anti-monopoly compliance awareness, there have been no newly added illicit practices associated with business operator concentration by platform enterprises since the new Anti-Monopoly Law came into effect on Aug. 1, 2022.

Efforts have focused on providing review services and improving review efficiency in the review process. We revised and released the Provisions on the Review of Concentration of Undertakings, and launched an antitrust review system for the concentration of operators, clarifying internal work requirements for simple cases. Specifically, such cases must be addressed within 20 days of enterprises registering applications, and the review must be completed within 20 days of application acceptance. The system will issue notifications if the handling of cases exceeds the required 20 days, and the staff responsible for the cases should provide explanations, aiming to offer enterprises clear and stable expectations for supervision. In 2023, the average review time for operator concentration cases was 25.7 days; for straightforward cases, it was 17.7 days. This efficiency is among the highest in major anti-monopoly jurisdictions. Since the amended Anti-Monopoly Law took effect on Aug. 1, 2023, we have unconditionally approved 29 cases of concentration of platform operators in accordance with the law, without any approvals with conditions or prohibited cases. 

Follow-up accountability refers to law enforcement, deterrence, and investigation into responsibility. Currently, we are expediting research and development of standards for discretion in administrative penalties for illegal business concentration, and the Rules for Dealing with Ineligible Cases of Concentration of Operators with Possibilities of Excluding or Restricting Competition. This aims to intensify regulation on illegal business concentration and so-called "killer mergers," including those that fail to meet thresholds but still exclude or restrict competition or have the potential to do so after the enforcement of the Anti-Monopoly Law. The goal is to enhance deterrence with mechanisms to champion fair market competition.

We always believe that pro-competition policies are pro-development policies. Anti-monopoly regulation aims to encourage enterprises to grow stronger in accordance with the law and to champion sound and sustainable industrial development, thereby providing consumers with more high-quality and economical goods and services. Going forward, the SAMR will continue to act on the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. We will promote development as well as strengthen supervision and regulation, adopt an open-minded and prudent attitude in supervision, and continuously improve regular supervision capabilities to support the sound and standardized development of the platform economy. Thank you.