The Chinese NDRC announces an antitrust investigation into foreign manufacturers of infant milk formula

Article published on Centre for Competition Policy blog.

Chinese Milk Powder Case: How Should We Interpret a Price Cut on the Announcement of an Antitrust Investigation?* Earlier this month, China’s National Development and Reform Commission (NDRC) announced an investigation into foreign manufacturers of infant milk formula. The very next day, two of the firms in question did something that would be unthinkable in Europe or the US – they announced they would lower their prices and other firms have since followed. Is this the behaviour of remorseful cartelists? Or is antitrust being used by the Chinese government in the pursuit of non-competition goals? On the face of it, the present investigation has the traits of a normal cartel case. CNN reported an NDRC official stating, “Based on the evidence obtained, these companies are involved in

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  • University of East Anglia (Norwich)

Quotation

Andreas Stephan, The Chinese NDRC announces an antitrust investigation into foreign manufacturers of infant milk formula, 3 July 2013, e-Competitions July 2013, Art. N° 55165

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