The Chinese NDRC imposes record fines on six major infant formula makers for vertical price-fixing practices (Biostime, Mead Johnson, Dumex, Abbott, FrieslandCampina, Fonterra)

I. Facts and Background On August 7, 2013, China's top enforcer in charge of curbing price monopolies, the National Development and Reform Commission (“NDRC”) announced its decision to levy fines in the total amount of CNY 668.73 million (about USD 108.34 million) on six infant formula producers for resale price maintenance (“infant formula decision”) in breach of the Chinese Anti-Monopoly Law (“AML”) [1]. The fines were determined based on a certain percentage of each company' turnover in the previous year. Biostime was fined CNY 162.9 million, representing 6% of its sales amount last year. Mead Johnson was fined 4% of its revenues of 2012, which is CNY 203.76 million. Penalties on all the other four brands account for 3% of their sales last year. Dumex was fined CNY 171.99 million,

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  • China University of Political Science and Law (Beijing)

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Hao Qian, The Chinese NDRC imposes record fines on six major infant formula makers for vertical price-fixing practices (Biostime, Mead Johnson, Dumex, Abbott, FrieslandCampina, Fonterra), 7 August 2013, e-Competitions August 2013, Art. N° 54929

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