China Monthly Antitrust Update: April 2025

[co-author: Ken Dai]

Developments Highlights

This monthly report outlines key developments in China’s antitrust sector for April. The following events merit special attention:

• SAMR: Conducting Antitrust Review on the Transaction concerning CK Hutchison in Accordance with the Law: SAMR would conduct an antitrust review on the transaction concerning CK Hutchison in accordance with the law.

• Shanghai Imposes Heavy Fines in Horizontal Monopoly Agreement Case Against Three Pharmaceutical Companies, Holds Individuals Liable for the First Time: In March, the Shanghai Administration for Market Regulation imposed heavy penalties on three pharmaceutical companies, including Shanghai SINE United Pharmaceuticals Co.,Ltd, for engaging in horizontal monopoly agreements, with a total fine and confiscation exceeding RMB 220 million. This case marks the first time after the revision of the Anti-Monopoly Law that individual responsibility for monopoly agreements was pursued, with some of the parties being imposed with the maximum fine of 10% but receiving an 80% reduction for leniency in penalty.

• Dang’tu Capital Water Co., Ltd in Anhui Fined Over RMB 986,000 for Abuse of Market Dominance: Recently, the Anhui Administration for Market Regulation imposed administrative penalties on Dang’tu Capital Water Co., Ltd. for abusing its market dominance, with a total fine and confiscation amounting to RMB 986,000. This case represents the first enforcement action against abuse of dominance in 2025.

Legislation

SAMR Issued the Guidelines for Administrative Penalty Discretion in Cases of Illegal Implementation of Concentration of Undertakings

Recently, the State Administration for Market Regulation (“SAMR”) issued the Guidelines for Administrative Penalty Discretion in Cases of Illegal Implementation of Concentration of Undertaking (“Guidelines”), aiming to standardize the administrative penalty actions taken against illegally merger control and ensure that antitrust enforcement agencies exercise their discretionary power in imposing administrative penalties in accordance with the law. ¹

SAMR Issued the Measures for the Implementation of the Regulation on Fair Competition Reviews

Recently, SAMR issued the Measures for the Implementation of the Regulation on Fair Competition Reviews, clarifying the reinforcement of rigid constraints on fair competition reviews, safeguarding the order of fair competition in the market, and accelerating the construction of a unified national market. The Measures will take effect from April 20th, 2025. ²

Authorities

SAMR: Conducting Antitrust Review on the Transaction concerning CK Hutchison in Accordance with the Law

On March 28, 2025, SAMR responded to the matter of the proposed transaction concerning CK Hutchison’s Panama ports. An official from the Second Antitrust Enforcement Department of SAMR stated that they had taken note of the transaction and would conduct an antitrust review in accordance with the law to protect fair market competition and safeguard public interest. ³

SAMR Launched First Administrative Penalty Self-Calculator

Recently, SAMR has issued the Guidelines for Administrative Penalty Discretion in Cases of Illegal Implementation of Concentration of Undertakings. To enhance the efficiency of smart regulation and further increase the transparency and predictability of antitrust enforcement in relation to concentration of undertakings, the Mock Calculator for Penalties for Illegal Implementation of Concentration of Undertakings based on the Guidelines has been officially issued. ⁴

SAMR Held a Forum on Fair Competition Among Enterprises

On March 19, Meng Yang, the Deputy Director of SAMR, presided over a forum on fair competition among enterprises. The forum summarized the regulatory achievements of the previous year and clarified that a special campaign will be launched to address the abuse of administrative power to exclude competition, strengthening the review of fair competition, clearing market barriers, formulating compliance guidelines for key areas, and focusing on resolving bottlenecks such as restrictions on cross-regional development of enterprises and impediments to the flow of essential factors, aimed to create a fair market environment. ⁵

SAMR Held the First Antitrust Compliance Seminar in 2025

On March 6, SAMR held the first Antitrust Compliance Seminar of 2025 in Beijing, focusing on the interpretation of the Antitrust Guidelines in the Pharmaceutical Field. The seminar adopted a “policy and case” format to deeply analyze the background, core clauses, and industry-specific implementation details of the Anti-monopoly Guide for the Pharmaceutical Field. The objective was to transform legal provisions into practical tools, thereby assisting pharmaceutical enterprises in identifying and preventing antitrust risks. ⁶

Government Work Report: Comprehensive Rectification on Neijuan Competition, Strengthening Supervision over Natural Monopolies and Fair Competition Review

On March 5, Premier Li Qiang of the State Council proposed in the Government Work Report to further advance the construction of a unified national market. This involves accelerating the establishment and improvement of fundamental institutional rules, dismantling local protectionism and market segmentation, resolving bottlenecks and obstacles in economic circulation such as market access and exit, and factor allocation, and comprehensively addressing “Neijuan” competition. ⁷

Public Enforcement

Shanghai Imposes Heavy Fines in Horizontal Monopoly Agreement Case Against Three Pharmaceutical Companies, Holds Individuals Liable for the First Time

In March, 2025, the Shanghai Administration for Market Regulation imposed heavy penalties on three pharmaceutical companies, including Shanghai SINE United Pharmaceuticals Co.,Ltd, for engaging in horizontal monopoly agreements, with a total fine and confiscation exceeding RMB 220 million. This case marks the first time after the revision of the Anti-Monopoly Law that individual responsibility for monopoly agreements was pursued, with some of the parties being imposed with the maximum fine of 10% but receiving an 80% reduction in penalty. ⁸

Dangtu County Capital Water Company in Anhui Fined Over RMB 986,000 for Abuse of Market Dominance

Recently, the Anhui Administration for Market Regulation imposed administrative penalties on Dangtu County Shouchuang Water Co., Ltd. for abusing its market dominance, with a total fine and confiscation amounting to RMB 986,000. This case represents the first enforcement action against abuse of dominance in 2025. ⁹

Courts Litigation

The Judgment of the First Administrative Litigation Case on the Review of Merger Control Takes Effect

In March, 2025, the Beijing Intellectual Property Court rejected the administrative litigation filed by Beijing Tobishi Pharmaceutical Co.,Ltd. against the SAMR. This is the first effective judgment in an administrative litigation case concerning the review of merger control since the implementation of the Anti-Monopoly Law. The case originated from SAMR’s determination that the acquisition of Tobishi’s equity by Simcere Pharmaceutical Co.Ltd. might eliminate competition in the market, and accordingly approved the transaction with restrictive conditions attached. The plaintiff appealed to revoke the conditional approval and the administrative reconsideration decision. ¹⁰

SPC Released Work Report: 31 Cases involving Monopoly Behaviors, Representing a 2.1-fold Increase

On March 8, the Work Report of the Supreme People’s Court (“SPC”) emphasized serving the construction of a unified national market and strengthening antitrust and anti-unfair competition judicature. The report noted that judicial interpretations on antitrust civil litigation were issued, and there were 31 cases involving monopoly behaviors, representing a 2.1-fold increase year-on-year; and 10,000 cases involving unfair competition behaviors, including infringement of trade secrets and bid-rigging, were concluded, up 0.7%.¹¹

China Hong Kong’s First Antitrust Criminal Case Sentenced

On March 3, the verdict for Hong Kong’s first criminal case related to obstructing the investigation work of the Competition Commission of Hong Kong (“CC”) was announced. An employee of Hong Kong Commercial Cleaning Services Limited was sentenced to two months’ imprisonment for the offenses of destroying and concealing documents. The employee was accused of attempting to delete five documents during a dawn raid investigation conducted by the CC on September 23, 2019. ¹²

1. https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldzfes/art/2025/art_0e89a4558a4744adaa2dc357b8621905.html
2. https://mp.weixin.qq.com/s/Cf00j8bDLrVKmZjp-G6zbA?scene=25#wechat_redirect
3. https://www.samr.gov.cn/xw/mtjj/art/2025/art_d6eda66f9646413586de65756625be43.html
4. https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldzfes/art/2025/art_d689dbc0d0f9424a9acf862fe62d0252.html
5. https://mp.weixin.qq.com/s/oPlXkxuY9SZihQUYHTwYRA?scene=25#wechat_redirect
6. https://mp.weixin.qq.com/s/06AHDojl29_RMuM-awTnMQ?scene=25#wechat_redirect
7. https://www.news.cn/politics/20250305/c51c68c485fa4c3f9d4c54751c715aba/c.html
8. https://www.samr.gov.cn/fldys/tzgg/xzcf/art/2025/art_91753953e0ce4a23a130c67452c477a0.html
9. https://amr.ah.gov.cn/xwdt/gsgg/149835301.html
10. https://mp.weixin.qq.com/s/EG_hO8v3xCga0HR-4uPuYQ?scene=25&sessionid=-783282728#wechat_redirect
11. https://www.court.gov.cn/zixun/xiangqing/457991.html
12. https://globalcompetitionreview.com/article/hong-kongs-first-ever-antitrust-obstruction-probe-leads-jail-time