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When Is Resale Price Maintenance Legal in China?

Posted in Chinese Developments, Monopolization/Abuse of Dominance

by Henry L.T. Chen, Frank Schoneveld and Alex An

A Shanghai court recently decided the first case involving vertical monopoly agreements (i.e., between supplier and distributor) since China’s Anti-Monopoly Law (AML) came into effect in 2008. Of note, the court found that resale price maintenance by itself does not constitute a monopoly agreement. However, given that other courts and AML enforcement authorities can impose fines for illegal resale price maintenance, market players should not assume the practice is legal in China.

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