Certain Provisions on the Prohibiting Public Utility Enterprises
from Committing Restrictive Acts Against Competition
Promulgated by Order No. 20 of the State Administration
of Industry and Commerce on December 24, 1993��

Article 1

With a view to preventing public utility enterprises from committing restrictive acts against competition and according to the relevant provisions of the Law of the People's Republic of China for Countering Unfair Competition (hereinafter referred to as the Law for Countering Unfair Competition), the Provisions are formulated.

Article 2

"Public utility enterprises" in the Provisions refers to operators involved in public utilities, including operators in trades such as the supply of water, electricity, heat and gas, post, telecommunications, transport and communications.

Article 3

Public utility enterprises shall abide by the law of the State. They shall not make use of their superior position to prejudice the fair competition of other operators, nor shall they infringe upon lawful rights and interests of consumers.

Article 4

When conducting business in the market, public utility enterprises shall not exercise the following restrictive acts against competition:

1. To restrict users and consumers only to buying relevant goods supplementarily supplied by them and to restrict users and consumers from buying and using similar goods supplied by other operators which are up to the requirements of technical standards;
   
   
2. To restrict users and consumers only to buying and using goods produced or marketed by the operators designated by them and to restrict users and consumers from buying and using similar goods supplied by other operators which are up to the requirements of technical standards;
   
   
3. To force users and consumers to buy unnecessary goods and parts supplied by them;
   
   
4. To force users and consumers to buy unnecessary goods supplied by the operators designated by them;
   
   
5. To hinder users and consumers from buying and using other goods supplied by other operators which are up to the requirements of technical standards on the pretext of the inspection on the quality, performance and other respects of the goods;
   
   
6. To refuse, suspend or reduce the supply of relevant goods to those users and consumers who refuse to accept their unreasonable conditions, or charge them excessively;
   
   
7. Other restrictive acts against competition.

Article 5

Where public utility enterprises commit any act listed in the preceding article, the authorities for the administration of industry and commerce should, in accordance with the provision of Article 23 of the Law for Countering Unfair Competition, order them to stop the illegal acts, and may impose fines of more than RMB���50,000 and less than RMB���200,000 according to circumstances.

Where public utility enterprises refuse to perform the punishment decision and continue to commit the acts listed in the preceding Article, they shall be deemed as having committed new illegal acts and shall be punished in severity.

Article 6

Where the designated operators take the advantage of the designation to market their inferior but high-priced goods or make exorbitant charges, the authorities for the administration of industry and commerce shall, in accordance with the provision of the Law for Countering Unfair Competition, confiscate their illegal income and may impose fines of more than twice and less than three times the illegal income according to circumstances.

"Inferior but high-priced goods" mentioned in the previous paragraph shall be ascertained by the authorities for the administration of industry and commerce on the basis of market prices for the same period of time and the quality of the similar goods and the complaint from the buyer. If necessary, the authorities for the administration of industry and commerce may make ascertainment in conjunction relevant departments

"Exorbitant charge" in the Provisions refers to the unreasonable fees charged in excess of normal items or criterion of charges.

Article 7

Illegal acts mentioned in the Provisions shall be investigated and dealt with by the authorities for the administration of industry and commerce at the level of the province or municipalities which are divided into districts. Organs which have the authorities to investigate and make decisions may authorize the authorities for the administration of industry and commerce at the county level to make investigation on the case.

Article 8

Where users or consumers suffer damages from the illegal acts of the public utility enterprises or designated operators, they may institute proceedings in the people's court for damages in accordance with the provision of Article 20 of the Law for Countering Unfair Competition.

Article 9

Goods referred to in the Provisions include services.

Other enterprises which have the monopolistic position under the law shall be dealt with in accordance with the Provisions if they commit acts in violation of the Provisions.

Article 10

The Provisions shall enter into force as of the date of promulgation.

��

��

��

��

��