Ohlhausen Tells Chinese to Focus Antitrust Efforts on Consumer Harm

China should continue to strengthen antitrust enforcement agencies, improve pro-innovation structures like intellectual property rights, and challenge government-created barriers to competition, said FTC Commissioner Maureen Ohlhausen Tuesday in Beijing. “Negative effects of government intervention in markets can be even more problematic than the actions of private actors.” She recommended Chinese antitrust enforcers follow the FTC's and DOJ’s example of focusing efforts on consumer welfare, not impacts to corporate competition. She warned Chinese authorities against using antitrust enforcement tools as a means for protecting domestic companies and industries against foreign competition. China started enforcing a new antitrust law in 2008, the same year its three anti-monopoly law agencies signed a memorandum of understanding with the FTC and DOJ. Ohlhausen credited China for continuing a joint dialogue with U.S. regulators, including Assistant Attorney General Makan Delrahim. She commended the China State Council’s June 2016 decision to establish a fair competition review system to prevent “excessive and inappropriate government intervention.” She emphasized China’s need to strengthen IP rights, as U.S. businesses accuse the Chinese of stealing IP information from American companies. “The countries that protect IP rights within their borders tend to foster innovation, those that fail to create the necessary predicates to investments in innovation lag behind,” said Ohlhausen.