Home Business JD.com fined 500,000 yuan for its acquisition of shares in Suzhou Gongpinhui for violating the anti-monopoly law

JD.com fined 500,000 yuan for its acquisition of shares in Suzhou Gongpinhui for violating the anti-monopoly law

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On November 20, the State Administration for Market Supervision made administrative punishment decisions on 43 cases of undeclared illegal implementation of the concentration of undertakings in accordance with the law. in,JingdongJiangsu Jucheng Space Technology Co., Ltd., a subsidiary of the group, was fined 500,000 yuan for its acquisition of equity in Suzhou Gongpinhui Information Technology Co., Ltd., which violated the anti-monopoly law.

State Administration for Market Regulation

Administrative penalty decision

State and Municipal Administration Punishment (2021) No. 115

Party: Jiangsu Jucheng Space Technology Co., Ltd.

Residence: Room 421-424, Hengtong Building, No. 19, Hongzehu East Road, Suyu District, Suqian City—YS00450

According to the “Anti-Monopoly Law of the People’s Republic of China” (hereinafter referred to as “Anti-Monopoly Law”) and “Interim Provisions on the Review of Concentration of Undertakings”, this machine has ) The acquisition of the equity of Suzhou Gongpinhui Information Technology Co., Ltd. (hereinafter referred to as Gongpinhui) is suspected of failing to declare the illegal implementation of the concentration of undertakings in accordance with the law for investigation.

Upon investigation, the case constituted a failure to declare the illegal implementation of the concentration of undertakings in accordance with the law, but it did not have the effect of eliminating or restricting competition. In accordance with the “Administrative Punishment Law of the People’s Republic of China” (hereinafter referred to as the “Administrative Punishment Law”), this agency served the “Administrative Punishment Notice” to Jucheng Space to inform the parties of the intended administrative punishment content, facts, reasons, and Basis, and inform the parties of their legal rights to make statements, defenses, and request hearings. Jucheng Space did not submit a statement, defense or request a hearing within the specified time limit. The investigation and trial of this case have now been concluded.

1. Basic situation

(1) The transaction party.

Acquirer: Jucheng Space. Registered and established in Suqian City, Jiangsu Province in 2019, the ultimate controller isJingdongGroup Co., Ltd. (hereinafter referred to asJingdongGroup), Jucheng Space is mainly engaged in network-related technology research and development, technical services, business information consulting and other businesses. In 2019, Jingdong Group’s global turnover is (omitted), and China’s domestic turnover is (omitted).

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Acquired party: Gongpinhui. It was incorporated in Suzhou, Jiangsu in 2007, and the ultimate controller before the transaction was (omitted). Gongpinhui is principally engaged in the distribution business of industrial products. The global turnover of Gongpinhui in 2019 is (omitted), and the domestic turnover of China is (omitted).

(2) Overview of the transaction.

This transaction is an equity purchase. On April 24, 2020, Jucheng Space and (omitted) signed the “Equity transferAgreement” to obtain 100% equity of Gongpinhui. The delivery will be completed on August 13, 2020, and Jucheng Space will obtain sole control of the industrial exchange.

2. Illegal facts and reasons

(1) This case constitutes a concentration of undertakings that have not been declared illegally implemented in accordance with the law.

Article 20 of the Anti-Monopoly Law stipulates that “concentration of business operators refers to the following situations: (1) Merger of business operators; (2) Business operators obtain control over other business operators by acquiring equity or assets; (3) Operator passedcontractObtaining control over other operators or being able to exert decisive influence on other operators.” This transaction is an equity acquisition. Jucheng Space acquires all the equity of Gongpinhui and implements separate control. It belongs to the 20th Anti-Monopoly Law. The concentration of undertakings stipulated in the Article.

JD Group’s global turnover in 2019 (omitted), China’s domestic turnover (omitted); In 2019, the global turnover of Gongpinhui is (omitted), and China’s domestic turnover is (omitted), which meets the “State Council’s Declaration of Concentration of Business Operators” The reporting standards stipulated in Article 3 of the “Regulations of the People’s Republic of China” belong to the circumstances that should be reported.

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Article 21 of the “Anti-Monopoly Law” stipulates that “If the concentration of undertakings meets the reporting standards set by the State Council, the undertakings shall report to the Anti-Monopoly Law Enforcement Agency of the State Council in advance, and the concentration shall not be implemented if there is no declaration.” On August 13, 2020, the transaction was completed and Jucheng Space obtained sole control of the Industrial Products Exchange. Failing to declare in accordance with the law before this, violating Article 21 of the Anti-Monopoly Law, constitutes a concentration of undertakings that did not declare illegal implementation in accordance with the law.

(2) This case does not have the effect of eliminating or restricting competition.

This agency has evaluated the impact of Jucheng Space’s acquisition of Gongpinhui’s equity on market competition, and the evaluation believes that the concentration of operators will not have the effect of eliminating or restricting competition.

3. Basis and decision of administrative penalty

Article 48 of the “Anti-Monopoly Law” stipulates that “Where operators implement concentration in violation of the provisions of this law, the Anti-Monopoly Law Enforcement Agency of the State Council shall order the suspension of the concentration, the disposal of shares or assets within a time limit, the transfer of business within a time limit, and other necessary measures to restore concentration. In the previous state, a fine of less than 500,000 yuan can be imposed.” Article 49 of the Anti-Monopoly Law stipulates that “for the fines stipulated in Articles 46, 47, and 48 of this Law, the anti-monopoly law enforcement agency shall consider the violation of the law when determining the specific fines. Factors such as nature, degree and duration.”

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According to the above regulations, based on the investigation and evaluation conclusions, this agency decided to impose a fine of 500,000 yuan on Jucheng Space.

Article 67 of the “Administrative Punishment Law” stipulates that “the administrative agency that makes the decision on fines shall be separated from the agency that collects fines. Except for fines collected on the spot in accordance with the provisions of Articles 68 and 69 of this law, The administrative agency that decides on the administrative penalty and its law-enforcement personnel shall not collect fines by themselves. The party concerned shall, within 15 days of receiving theBankOr pay the fine through the electronic payment system.BankThe fine should be accepted and handed over to the state treasury directly.”

The party concerned shall, within 15 days from the date of receipt of this administrative penalty decision, bring the payment code to 15 central fiscal non-tax revenue collection agentsBank(Industry, Agriculture, China Construction, Communications, CITIC, China Everbright, China Merchants, Postal Savings, China, Ping An, Industrial, People’s Livelihood, Guangfa, Zheshang) Any bank branch or online bank pays a fine. Payment code: 0000002102114826.

If the party is dissatisfied with the above-mentioned administrative penalty decision, he may, within 60 days from the date of receipt of this administrative penalty decision, apply to the State Administration for Market Supervision and Administration for administrative reconsideration; or within six months from the date of receipt of this administrative penalty decision. Internally, an administrative lawsuit was filed in the People’s Court in accordance with the law. During the period of administrative reconsideration or administrative litigation, the execution of this administrative penalty decision shall not be suspended.

General Administration of Market Supervision

November 16, 2021

(This piece is publicly released)

(Source: CDC Finance)

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