A water supply company in Yunnan was fined 2.49 million yuan for monopolizing water supply construction units

The water supply enterprises should fulfill the obligation of meter reading to the home to the actual end users

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constitutes an act of abusing its dominant position in the market that “there is no legitimate reason to tie-in goods, or to attach other unreasonable trading conditions” in the anti-monopoly law

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to stop its illegal behavior, and imposed a fine of 6% of its sales in 2018, about 2.4954 million yuan

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In December 2018, Yunnan Provincial Bureau of market supervision received the feedback from the fifth supervision of the State Council and filed a case for investigation on the suspected monopoly of Mengzi Sitong Taixing water supply Co., Ltd

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The practice of water supply company not only objectively hinders other construction enterprises to carry out business activities, infringes the right of project construction unit to choose water supply construction enterprises independently, but also seriously damages the interests of terminal water users, increases the project construction cost, and increases the burden of people’s house purchase

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Market dominant position refers to a market position in which an operator can control the price, quantity or other trading conditions of a commodity in the relevant market, or hinder or influence other operators to enter the market

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To sum up, Yunnan Provincial Market Supervision Bureau ordered Mengzi Sitong Taixing water supply Co., Ltd

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In the view of anti-monopoly law enforcement agencies, Mengzi Sitong Taixing water supply Co., Ltd

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Therefore, the commodity market in the relevant market of this case is the urban public tap water supply service market

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In addition, a 2008 “Honghe Hani and Yi Autonomous Prefecture People’s government meeting minutes 15” shows that the water supply company has the exclusive right to operate within the planning scope of Honghe Industrial Park to the west of Beijing Road (West Ring Road) and southwest of Tianma Road West extension line in Mengzi City, and within the areas to the west of Fenghuang Road, north of Honghe Avenue, south of Tianma road and east of Beijing Road (West Ring Road)

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Moreover, the residential projects involved in this case are all new residential areas, and there are no historical problems of old residential areas

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According to the decision on administrative punishment, the goods provided by the water supply company are tap water meeting the requirements of urban water supply

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According to Nandu reporter, in order to apply the relevant provisions of the anti monopoly law on abuse of market dominant position, we must first determine whether the parties have market dominant position

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According to the investigation, when the water user applies to the water supply company for the first time, it is necessary to sign a “water supply contract” with the water supply company

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They all have the conditions of meter reading to the home

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If the water user has the conditions for water supply and meter reading, it must be designed according to the household network reconstruction requirements of Sitong company and handed over to Sitong company for construction

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Therefore, it is obviously unreasonable for the water supply company to select the designated water supply construction unit as the precondition to fulfill the duty of meter reading

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Therefore, the anti-monopoly law enforcement agencies believe that water supply companies should be given heavier punishment

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According to the contract, the water users applying for water use for the first time must be investigated, constructed and installed by Sitong company

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because

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has a completely dominant position in the relevant market

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According to the regulations of urban water supply, as long as the units with corresponding qualifications can carry out the design and construction of urban water supply projects, as long as the project quality meets the relevant national standards, the effective supply of goods can be guaranteed

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For the water users who do not agree with the budget quotation of Sitong company, do not sign the contract, or entrust other qualified units to build the water supply company, the water supply company refuses to go through the procedures of meter reading to the house or adds an acceptance link outside the completion acceptance of the construction project, and then refuses to go through the procedures of meter reading to the house in disguised form by not accepting or delaying the acceptance

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In addition, the investigation shows that despite repeated coordination by government departments, water supply companies continue to carry out illegal acts against a number of project construction units from 2014 to 2018

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Anti monopoly law enforcement agencies believe that there is no necessary connection between the effective supply of goods by water supply companies and the construction of water supply facilities

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To sum up, the anti-monopoly law enforcement authorities believe that Mengzi Sitong Taixing water supply Co., Ltd

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The first public sector monopoly ticket issued in 2021! On February 18, the State Administration of market supervision reported that Mengzi Sitong Taixing water supply Co., Ltd

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of Yunnan Province was fined 2.4954 million yuan by the anti-monopoly law enforcement agency for abusing its monopoly position to force water users to choose the designated water supply construction unit or not to handle the water supply business

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How long can LNG heavy truck live if LNG price goes up like this? Disclaimer] the articles in standard gas are original or searched and compiled according to the official account number

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It should be noted that although there are still other drinking water supplies in the market, due to factors such as price and mode of supply, tap water is basically not replaceable in urban production and life, and there is no possibility of cross supply of goods under the current policy and water supply mode

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(hereinafter referred to as the water supply company)

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