MOC Issues New Censorship Regulation on Online Game and Online Music

(By You Yunting) Pursuant to the Implementing the Administrative Measures for Content Self-review of Network Culture Operators that came into effect on December 1, 2013, an Internet entity holding an Internet Culture Business License may be entitled to self-examine the contents of online game and online music but the operators of said internet entity need to attend a content self-review training hosted by the Ministry of Culture.

The specific contents are as follows:

1.      Licensed Scope of Business:

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What Legal Problems are GSK Scandal Involved within China’s Criminal Law?

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(By Zhou Wei) On July 11, 2013, the Ministry of Public Security (the “MPS”) issued a piece of news on its official website that some senior executives of GlaxoSmithKline (China) Co., Ltd (the “GSK”) were being investigated for their involvement in serious unspecific economic crimes, demonstrating a scandal with GSK’s involvement in bribery in China. Utilizing currently disclosed information, this post is aimed at analyzing possible alleged criminal charges and criminal liabilities.

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Full Text of NDRC’s Public Announcement on Milk Powder Manufactures’ Vertical Monopoly of Price Control

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(By You Yunting) According to the latest announcement on Chinese National Development and Reform Commission website, NDRC’s carried out anti-monopoly investigations into milk powder manufacturers and imposed fines. Based on this announcement, we found that there are different views between NDRC and Chinese courts on the understanding of Article 14 of the Anti Monopoly Law. With regard to the court’s understanding that milk powder formula in this case is effective competitive, the milk powder manufacturers shall not the determined as violating the the Anti Monopoly Law even if they conducted price control. Following is our translation for this public announcement.

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The Legal Sense of the Punishment over the Vertical Monopoly of Mao Tai and Wu Liang Ye By NDRC

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(You Yunting) According to the report, Mao Tai Company and Wu Liang Ye Company, both are the top distilleries in China, would be ordered the penalty of 1% of their annual sales in 2012, approximately RMB 449 million yuan, by the National Development and Reform Commission (the “NDRC”) for their restricting or fixing the retail price of their downstream dealers. You might have noticed “would be”, and we have no idea about whether the final decision has been made, and it could not exclude the possibility that the news report is only the public opinion test by NDRC for its punishment in consideration.

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Administrative Warning Issued to 360.cn by Beijing Administration of Industry and Commerce

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 (By You Yunting) Recently, the Beijing Municipal Administration of Industry and Commerce (“Administration”) published on its official Weibo that the Beijing Administration and Xicheng Administration of Industry and Commerce made an appointment with the chief of Beijing’s Qihoo Co. (“Qihoo”), and issued an administrative warning against company conduct, claiming violations of unfair competition laws and regulations related to its “360 Safeguard” for use in computer internet browsers.

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