The Shanghai Higher Court and one of China’s antitrust regulators issues decisions that resale price maintenance violated China’s Anti-Monopoly Law (Rainbow / Johnson & Johnson)

Within the same week, the Shanghai Higher Court and one of China’s antitrust antitrust regulators have issued decisions that resale price maintenance ("RPM") violated China’s Anti-Monopoly Law ("AML"). The decision of the Shanghai Higher Court involved an agreement between Johnson & Johnson ("J&J") and a distributor, prohibiting the resale of J&J products below a certain price. This decision was followed by the largest set of antitrust fines to date for RPM violations, imposed by the National Development and Reform Commission ("NDRC"), one of China’s antitrust agencies. Read together, the Court decision and NDRC’s recent RPM enforcement actions indicate that, although RPM technically is subject to a rule of reason analysis, courts and regulators in China are reluctant to

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Peter J. Wang, Sébastien J. Evrard, Yizhe Zhang, Baohui Zhang, The Shanghai Higher Court and one of China’s antitrust regulators issues decisions that resale price maintenance violated China’s Anti-Monopoly Law (Rainbow / Johnson & Johnson), 1 August 2013, e-Competitions Bulletin Competition in the Pharmaceutical sector, Art. N° 66635

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