Case Brief

Hangzhou Qing X Company (hereinafter referred to as the Qing X Company), an Internet-based bicycle rental service provider, filed an administrative lawsuit against a municipal Administrative Approval and Service Bureau (hereinafter referred to as the Administrative Approval Bureau) and a municipal Big Data Center, on the grounds that the two entities illegally set up and implemented a shared electric bicycle franchise system in the city, which constituted abuse of administrative power to exclude or restrict competition. The lawsuit requested the revocation of the specific sued administrative act. The first instance court ruled to dismiss the claim of the Qing X Company. The Qing X Company was dissatisfied with the ruling and filed an appeal.

The Supreme People's Court, during the second instance, held that the Administrative Approval Bureau and the municipal Big Data Center, by establishing and granting an exclusive franchise for shared electric bicycles in the city to a municipal Jiao X Smart City Development Co., Ltd. (hereinafter referred to as the "Jiao X Company"), had essentially set and conferred exclusive franchise for shared electric bicycles. This act amounted to administrative authorities using their administrative power to restrict transactions, lacking both legality and rationality. Furthermore, it had the effect of excluding or restricting competition, thereby constituting an act of abusing administrative power to exclude or restrict competition as prohibited by the Anti-Monopoly Law. Given that the Administrative Approval Bureau lacked legal basis and exceeded its authority in establishing exclusive franchise for shared electric bicycles in the city, and that the evidence on record was insufficient to prove that revoking the sued act would harm national interests or social public interests, the sued administrative act should be revoked. Consequently, the final judgment overturned the first-instance decision and ruled to revoke the administrative act of establishing exclusive franchise for shared electric bicycles in the city and granting it to Jiao X Company.

Typical Significance

This case marks the first instance where the Supreme People's Court has recognized an act of abusing administrative power to exclude or restrict competition. It holds positive significance in clarifying the criteria for determining the abuse of administrative power to exclude or restrict competition, regulating the abuse of administrative power to exclude or restrict competition in accordance with the law, promoting the genuine opening up of market access, advancing the in-depth development of a unified national market, and enhancing market vitality.

(Case Source: Typical Anti-monopoly Cases of People's Courts in 2025 Released by the Supreme People's Court)