The Chinese Supreme People’s Court issues a ruling on resale price maintenance in the automobile retail sector which is likely to prompt more follow-on antitrust litigation (Miao Chong / SAIC-GM)
In Short
The Development: China's Supreme People's Court recently ruled for the plaintiff in Miao Chong v. SAIC-GM, which marked a rare triumph for a plaintiff in antitrust litigation as a follow-on to an administrative penalty decision. The plaintiff-consumer alleged that a joint venture between General Motors China and SAIC adopted resale price maintenance in the sale of cars that harmed competition.
The Result: The case indicates a shift of the Chinese courts' approach toward resale price maintenance and, more broadly, their recognition of Chinese antitrust enforcers' administrative decisions.
Looking Ahead: The Miao Chong decision will encourage plaintiffs to file more follow-on antitrust damages claims, and defendants in administrative penalty decisions will be more likely to
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