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China's first anti-monopoly law takes effect

(Xinhua)
Updated: 2008-08-01 22:04

Three government organs, including the National Development and Reform Commission (NDRC), the Ministry of Commerce, and the State Administration for Industry and Commerce (SAIC), will enforce the law and carry out its implementation in a coordinated fashion.

Related readings:  Anti-monopoly law needs time to be effective  AmCham-China welcomes anti-monopoly law  Anti-monopoly law commission in force

The SAIC said earlier it had established an independent bureau, which was in charge of investigating and punishing unfair competition, commercial bribery, smuggling and other cases that broke relevant economic laws.

In addition, the country's top economic regulator, the NDRC, finished a draft of the anti-price monopoly law regulation earlier this week, which was a component of the anti-monopoly law.

According to the draft, monopolizing enterprises that intended to control prices, dump their products at extremely low prices and sold products at various prices between different consumers at random, would face punishment.

"The anti-price monopoly law regulation will determine the government's actions in cracking down on price monopoly via a legal basis," said Li Lei of the NDRC's price supervision department.

The anti-monopoly law was not expected to shake the country's "4S" automobile marketing mode, which features a combination of "sales, spare parts, service, and survey," market analysts said.

"Since no single automobile enterprise dominates the domestic market, there is no monopoly in this sector," said a Ministry of Commerce official who declined to be named. "The only problem is excessive competition."

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