Title
Recent Developments in Antitrust Enforcement and Litigation in China Involving Resale Price Maintenance
Author
Yijia (Isabelle) Wang
Date
3/18/2015
(Original Publish Date: 9/9/2013)
(Original Publish Date: 9/9/2013)
Abstract
Resale price maintenance (RPM) has been a "hot" antitrust issue in the antitrust landscape in China. This year, two antitrust enforcement actions by China's National Development and Reform Commission (NDRC) involved allegations against RPM programs, and the penalties set records for a fine imposed by China's antitrust enforcement agencies. The final ruling by the Shanghai Higher Court in the first private antitrust lawsuit involving vertical agreements -- Beijing Ruibang Yonghe Science and Technology Trade Company v. Johnson & Johnson Medical (Shanghai) Ltd., and Johnson & Johnson Medical (China) Ltd. ("Rainbow v. J&J") -- also drew significant attention. In this NERA paper, Senior Consultant Dr. Yijia (Isabelle) Wang examines the current approach to RPM taken by Chinese antitrust enforcers and courts. Specifically, Dr. Wang assesses the framework provided by the Shanghai Higher Court in Rainbow v. J&J, and concludes that it is an appropriate framework to evaluate the competitive effects of RPM programs. She then describes the types of empirical evidence that can be used to evaluate each factor in the Rainbow v. J&J framework.