China's State Administration for Market Regulation Photo: VCG

The State Administration for Market Regulation (SAMR), China's market regulator, has fined Luxshare Precision Industry 900,000 yuan ($132,616) for the illegal implementation of acquisition of some business of Wingtech Technology, it announced on Wednesday.

According to the SAMR, Luxshare voluntarily reported to the administration on February 17, 2025, that its acquisition of part of the business of Wingtech Technology was suspected of constituting an illegal implementation of a concentration of undertakings.

Following an investigation, it was confirmed that the transaction was completed without the required prior declaration in accordance with the law, in violation of the relevant provisions of the country's anti-monopoly law regarding mandatory pre-notification for concentrations of undertakings. 

After assessment, the transaction was found to have no effect of eliminating or restricting competition. Given that Luxshare Precision proactively self-reported the violation before the SAMR discovered it, the case qualified for lenient treatment under the law, it said. 

In addition, Luxshare Precision took the initiative to improve and effectively implement its antitrust compliance management system, which warranted a further reduction in the penalty. In accordance with the anti-monopoly law and related regulations, the SAMR applied a lighter penalty and reduced the fine amount, resulting in the above-mentioned administrative penalty decision, it said on Wednesday.

According to the administration, Luxshare Precision was registered and established in South China's Guangdong Province in 2004. Its principal business encompasses the production and sales of electronic product manufacturing services, automotive internet products and precision components, communication interconnect products and precision components, other connectors, and related products.

Wingtech Technology was registered and established in Central China's Hubei Province in 1993. Its main businesses include the research and development (R&D) of semiconductor power devices and analog chips, wafer fabrication, packaging and testing services; as well as R&D and manufacturing services for end products such as smartphones, tablets, laptops, and vehicle electronics.

The SAMR said that the case encouraged undertakings to proactively report violations and strive to obtain a reduced fine. The administration reminds all business operators to respect the law and prioritize compliance. If they discover any potential violation — such as implementing a concentration of undertakings without the required prior declaration — they should take the initiative to eliminate or mitigate the adverse consequences, voluntarily report the violation to the regulatory authority, actively cooperate with the investigation, establish or improve their antitrust compliance management system and implement it effectively. By doing so, they can earn recognition in the penalty discretion process and avoid more severe legal consequences, it noted.

This case demonstrates the maturation and standardization of China's antitrust enforcement, Li Chang'an, an economist at the University of International Business and Economics, told the Global Times on Wednesday. 

"On one hand, as both Luxshare Precision and Wingtech Technology are leading enterprises in the electronics industry, the acquisition of the relevant business carries a potential risk of creating a monopoly. The SAMR's penalty for this violation helps safeguard fair market competition and serves as a reminder to other enterprises to strictly comply with laws and regulations when engaging in similar activities," Li said.

On the other hand, the regulatory authorities grant lenient penalties to enterprises that proactively conduct self-examination, which helps guide more companies to voluntarily enhance compliance, the expert added.

In recent years, China has significantly strengthened its anti-monopoly legislature framework, including updating its anti-monopoly law and rolling out more detailed rules tailored to the digital and platform economy, the Xinhua News Agency reported. 

As China continues to refine its anti-monopoly toolkit, more targeted and enforceable measures are expected. The goal remains straightforward: protect fair competition, boost economic efficiency, and create space for more businesses to thrive in China's vast market, Xinhua said.