Related to water, gas, electricity, and heating sectors: Release of the "Antitrust Guidelines for the Public Utility Sector"

According to the State Administration for Market Regulation, in order to thoroughly implement the decisions and deployments of the 20th National Congress of the Communist Party and the various plenary sessions regarding strengthening antitrust efforts, to improve the regulatory system and mechanisms for natural monopoly segments, to refine the rules of fair competition, to prevent and curb monopolistic behaviors in the public utility sector, to maintain fair market competition, and to protect the interests of consumers and social public interests, the State Council’s Anti-Monopoly and Anti-Unfair Competition Committee has issued the “Guidelines on Anti-Monopoly in the Public Utility Sector” (hereinafter referred to as the “Guidelines”).

Public utility sectors such as water supply, electricity, gas, and heating have natural monopoly segments. In recent years, monopolistic behaviors have been increasingly frequent. Public utility operators are prone to extend their monopoly advantages to upstream and downstream competitive segments or to exclude and restrict market competition in these segments. Due to the public, regional, and policy-oriented nature of public utilities, the types, manifestations, and damages of monopolistic behaviors exhibit certain particularities.

The “Guidelines” focus on monopoly issues in the public utility sector, systematically summarize enforcement experiences, accurately grasp the characteristics of the sector and the laws of market competition, and comprehensively refine the rules for identifying monopolistic behaviors in the public utility sector. They provide clearer and more precise guidance for antitrust enforcement and compliance by operators in this field. Not only does this enhance the scientific, targeted, and effective nature of antitrust enforcement, but it also helps establish a long-term, effective regulatory mechanism for antitrust in the public utility sector, promoting the sustained, standardized, and healthy development of public utilities.

(Source: CCTV News Client)