Header graphic for print
Antitrust Alert A Global Resource for Compliance Officers & Legal Advisors

Category Archives: Chinese Developments

Subscribe to Chinese Developments RSS Feed

MOFCOM Asks Second Circuit to Reverse Judgment Against Chinese Vitamin Manufacturers

Posted in Chinese Developments, Private Litigation

On April 14, 2014, China’s Ministry of Commerce (MOFCOM) filed an amicus brief asking the Second Circuit to overturn a ruling by the Eastern District of New York against Chinese vitamin manufacturers.  See Brief for Amicus Curiae Ministry of Commerce of the People’s Republic of China in Support of Defendants-Appellants, In re Vitamin C Antitrust [...]

China’s Latest Enforcement of the Anti-Monopoly Law and Price Supervision/Regulation

Posted in Chinese Developments, Monopolization/Abuse of Dominance

by John Z.L. Huang,  Alex An, Bryan Fu and Cook Xu China’s National Development and Reform Commission (NDRC) recently outlined its latest efforts in the enforcement of the Anti-Monopoly Law and price supervision.  This newsletter summarizes the noteworthy information NDRC disclosed. Click here to read the full article.

Resale Price Maintenance in China: Enforcement Authorities Imposing Large Fines for Anti-Monopoly Law Violations

Posted in Chinese Developments

by Henry L.T. Chen, Frank Schoneveld, Alex An and Jared Nelson Recently Shanghai High People’s Court reached a decision in the first lawsuit involving resale price maintenance (RPM) since China’s Anti-Monopoly Law (AML) came into effect five years ago.  Shortly thereafter, a key enforcement agency announced RPM-related fines against six milk powder companies, five of which [...]

China’s Merger Control Rules Changing: MOFCOM Publishes New Draft Regulations on Remedies and Simple Cases

Posted in Chinese Developments, Joint Ventures/Competitor Collaboration, Mergers & Acquisitions

by Henry Chen, Frank Schoneveld and Alex An China’s Ministry of Commerce recently issued two new draft regulations.  The first provides a wider range of potential remedies to obtain the clearance of a concentration (e.g., a merger, acquisition, joint venture, etc.); the other defines the standards for “simple” merger cases that are eligible for a [...]

Distribution in China – Legal Issues

Posted in Chinese Developments, Distribution/Franchising

Contact: Frank Schoneveld, Kevin Qian, John Huang and Winston Zhao McDermott Will & Emery is pleased to offer “Distribution in China – Legal Issues*,” a one-stop resource covering distribution in China, including: The business models and legal structures most commonly used for distribution in China Important issues to consider in the design of a distribution [...]

Abuse of IP Rights Under China’s Antitrust Rules: Recent Cases Have a Potentially Serious Impact

Posted in Chinese Developments, IP Antitrust, Monopolization/Abuse of Dominance

by Frank Schoneveld Corporations doing business in China, based on their intellectual property (IP) rights, need to be aware of the potentially serious impact of China’s Anti-Monopoly Law and other antitrust rules.  China’s Anti-Monopoly Law prohibits the holder of IP rights from abusing those rights when it has a dominant market position.  Such dominance can [...]

Distribution in China – Legal Issues, Part IV. Drafting the Distribution Contract

Posted in Chinese Developments, Distribution/Franchising

Contact: Frank Schoneveld, Kevin Qian, John Huang and Winston Zhao “Distribution in China – Legal Issues” is a four-part series.  Part I discussed the business models and legal structures most commonly used for distribution in China.  Part II looked at important issues to consider in the design of a distribution system for China, such as [...]

Distribution in China – Legal Issues, Part III. Pre-Contract Matters

Posted in Chinese Developments, Distribution/Franchising

Contact: Frank Schoneveld, Kevin Qian, John Huang and Winston Zhao “Distribution in China – Legal Issues” is a four-part series.  Part I discussed the business models and legal structures most commonly used for distribution in China.  Part II looked at important issues to consider in the design of a distribution system for China, such as taxation, [...]

China Fines Liquor Producers Over US$70 million for Fixing Minimum Resale Prices

Posted in Chinese Developments, Distribution/Franchising

by Frank Schoneveld Last week one of China’s antitrust regulators, the National Development and Reform Commission (NDRC), imposed fines of RMB419 million (+/- US$72 million) on two of the most famous producers of Chinese liquor, Moutai and WuLiangye.  The fines were imposed for restricting the minimum price at which their distributors could resell the liquor. [...]

Distribution in China – Legal Issues, Part II. Distribution System Design

Posted in Chinese Developments

Contact: Frank Schoneveld, Kevin Qian, John Huang and Winston Zhao “Distribution in China – Legal Issues” is a four-part series.  Part I discussed the business models and legal structures most commonly used for distribution in China.  Part II looks at important issues to consider in the design of a distribution system for China, such as taxation, [...]

Distribution in China – Legal Issues, Part I. Business Models and Structures

Posted in Chinese Developments, Distribution/Franchising

For more information, please contact Frank Schoneveld, Kevin Qian, John Huang or Winston Zhao. “Distribution in China – Legal Issues” is a four-part series.  Part I discusses the business models and legal structures most commonly used for distribution in China.  Part II will look at important issues to consider in the design of a distribution [...]

China’s Ministry of Commerce Announces Investigations into Failures to Notify a Concentration, Introduces New Transparency Measures

Posted in Chinese Developments, Mergers & Acquisitions

by Henry L.T. Chen, Frank Schoneveld, Jared Nelson and Sean Pan China’s Ministry of Commerce recently announced that it opened four investigations during 2012 into suspected non-compliance with China’s merger control notification procedures.  The outcomes of the investigations are still uncertain, but the actions clearly show increased efforts to ensure compliance through enforcement of the [...]

China’s Antitrust Authority Imposes Fines on Foreign Corporations for the First Time

Posted in Cartel Enforcement, Chinese Developments

by Henry L.T. Chen, Frank Schoneveld, Jared Nelson and Sean Pan Recently China’s National Development and Reform Commission (NDRC) imposed an RMB 353 million (USD 56.7 million) penalty against an international price-fixing cartel of LCD manufacturers, the largest the NDRC has ever imposed for antitrust infringement.  The penalty is China’s first enforcement action against an [...]

Energy Sector A Target – China’s Antitrust Enforcement Agencies to Take Action Against International Cartels

Posted in Cartel Enforcement, Chinese Developments

by Frank Schoneveld In the last six months, China’s antitrust enforcement agencies have signed five Memorandums of Cooperation with antitrust authorities in the United States, European Union, South Korea, Australia and Brazil. During this same period, Chinese antitrust enforcement agencies have substantially increased their personnel resources.  So far, in 2012 more than 10 cartel investigations [...]

Global Antitrust Cooperation: EU’s Top Regulator Signs MoU with China

Posted in Chinese Developments, EC Developments

by Henry L.T. Chen, David Henry, Frank Schoneveld and Philipp Werner On September 20 , 2012, European Commission officials concluded a Memorandum of Understanding (MoU) with Chinese officials in respect of antitrust law.  Signed by the Directorate General for Competition and two of China’s antitrust law enforcement authorities, the National Development and Reform Commission (NDRC) [...]

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 [...]

China Streamlines Antitrust Notification Process

Posted in Chinese Developments, Joint Ventures/Competitor Collaboration, Mergers & Acquisitions

by Henry L.T. Chen, Frank Schonveld and Brian Fu The Ministry of Commerce of China (MOFCOM) recently promulgated a new amended merger notification form along with instructions for completing the form.  In doing so, MOFCOM aims to further regulate the procedures regarding antitrust review of large mergers, acquisitions and joint ventures; to promote transparency in [...]

China’s Anti-Monopoly Law Makes it Easier to Sue in Cases of Anti-Competitive Conduct

Posted in Chinese Developments, Monopolization/Abuse of Dominance, Private Litigation

by Henry L.T. Chen and Frank Schoneveld.    Recently, the Supreme People’s Court of China issued final rules to build a working framework for civil anti-monopoly cases brought under the country’s Anti-Monopoly Law.  The rules will take effect on 1 June 2012. To read the full article, please click here. 

An RMB 150-Million Litigation in China for the Abuse of a Dominant Market Position

Posted in Chinese Developments, Monopolization/Abuse of Dominance

by Henry L.T. Chen and Frank Schoneveld Recently, the High People’s Court of Guangdong held a public hearing for a high-profile lawsuit involving two software giants and alleged abuse of a dominant market position.  This is the first anti-monopoly case accepted by the court, and the claimed amount is RMB 150 million (approximately US$23.8 million).  [...]

China Law Alert: Focus on Competition – March 2012

Posted in Chinese Developments, Mergers & Acquisitions, Monopolization/Abuse of Dominance

by Henry L.T. Chen, Frank Schoneveld, Alex An, Brian Fu and Angel Wang McDermott Will & Emery has released the latest China Law Alert: Focus on Competition, which provides insight on current issues surrounding cross-border antitrust and transactional issues.  China’s New Merger Control Regime Makes Major Progress in Its First Three Years It is now [...]

China Conditionally Clears Western Digital’s Acquisition of Hitachi’s Hard Disk Drive Business

Posted in Chinese Developments, EC Developments, Mergers & Acquisitions

by Henry L.T. Chen, Frank Schoneveld and James Jiang Recently China’s Ministry of Commerce (MOFCOM) approved Western Digital’s proposed acquisition of Hitachi’s hard disk drive business on a conditional basis.  Containing the most comprehensive clearance conditions ever imposed by MOFCOM, this decision mirrors previous guidance issued by the European Commission and illustrates that at least [...]