A Chinese Intermediate People’s Court hears the first private litigation challenging vertical price-fixing (Johnson & Johnson)

The J&J Vertical Price-Fixing Litigation in China* Johnson & Johnson Medical (China) Ltd. (‘J&J Medical’) and its Shanghai branch are sued in China for minimum resale price maintenance (RPM) by a Beijing-based distributor. This is the first private litigation that challenges RPM pursuant to China’s Anti-Monopoly Law (AML). The Facts Rainbow Medical Equipment & Supplies Co. (‘Rainbow’) distributed J&J suturing products for 15 years. The distribution agreements were reached annually. In January 2008, Rainbow signed a one-year distribution agreement with J&J Medical and its Shanghai branch (‘J&J Medical Shanghai’). According to the agreement, Rainbow was authorized to sell J&J suturing products to hospitals in allocated regions of Beijing above minimum