China defends anti-monopoly probes; says Qualcomm inquiry nearly over

China’s three anti-monopoly regulators on Thursday launched a vigorous defence of their recent investigations into foreign companies, which have prompted mounting international criticism, and said they are not targeting multinational firms.   Cases are “processed according to the law and are transparent”, said Xu Kunlin, director general of the National Development and Reform Commission’s (NDRC) Price Supervision and Inspection and Anti-Monopoly Bureau. Xu also said that the NDRC’s investigation of U.S. chipmaker Qualcomm Inc was “basically done” and that Qualcomm President Derek Aberle would meet with the regulator on Friday.   Thursday’s rare joint press conference, which also included anti-trust heads from the Ministry of Commerce and State Administration for Industry and Commerce, showed the regulators presenting a united front. It comes days after Premier Li Keqiang defended a series of probes into overseas companies amid snowballing concern from the foreign business community.   In the last two weeks, four leading international business lobbies have raised alarm over a series of investigations into international firms. Their complaints range from worries that foreign companies are being unfairly targeted by probes motivated by China’s industrial policy aims, to concerns over the use of strong-arm tactics by Chinese regulators.   On Wednesday, US Federal Trade Commission Chairwoman Edith Ramirez spoke publicly about reports of China’s enforcement of its anti-trust law and its investigation of Qualcomm. “I am seriously concerned by these reports, which suggest an enforcement policy focused on reducing royalty payments for local implementers as a matter of industrial policy, rather than protecting competition and long-run consumer welfare,” Ramirez said, without mentioning Qualcomm by name.   China’s anti-trust enforcers have gone after an array of industries, including foreign automakers and tech firms. Last month, the NDRC fined Japanese auto parts makers a record 1.235 billion yuan ($201 million) for manipulating prices, and it is currently investigating Qualcomm in a case that could yield record fines of more than $1 billion.   Qualcomm Executive Chairman Paul Jacobs declined to comment when asked about Aberle’s meeting. “We have a good business in China and we work very closely with the partners here,” Jacobs said on the sidelines of the World Economic Forum event in China’s northern city of Tianjin.   Separately, the State Administration for Industry and Commerce (SAIC), defended its investigation of Microsoft Corp., the world’s biggest software company.   Earlier this month, SAIC gave Microsoft 20 days to reply to queries on the compatibility of its Windows operating system and Office software suite. Director General Ren Airong, of SAIC’s Anti-monopoly and Anti-unfair Competition Enforcement Bureau, said that “many firms” had reported that Microsoft was suspected of monopoly practices.   Ren also said that Microsoft had “more lawyers” than any case the regulator has investigated.   On Tuesday, China’s Premier Li Keqiang waded into the fray, telling executives that the investigations were conducted “legally, transparently and fairly”, in some of the highest level official comments on the issue to date. Li said that only 10 percent of companies impacted by anti-trust investigations were foreign.   The regulators in a joint statement said that they were mindful of protecting the legal rights of companies, and that companies under investigation had the right to engage lawyers. All enforcement regulators were improving transparency, the agencies said. “Chinese anti-monopoly enforcement agencies take serious note of the statements made by enterprises under investigation and are mindful of protecting their lawful rights during the whole investigation process so as to ensure an objective and fair anti-monopoly result,” the statement said.   Reuters