Archives: Chinese Developments

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Enhanced Sharing of Antitrust Evidence: New EU/Japan Cooperation Agreement

On 15 March 2016, the Japan Fair Trade Commission (JFTC) and the European Commission (Commission) announced their intention to upgrade the current antitrust co-operation agreement between Japan and the European Union. The upgrade will have a number of practical and legal implications for companies involved in international antitrust investigations or considering making leniency applications. The … Continue Reading

Top Antitrust Enforcers Respond to Congressional Questioning

Federal Trade Commission (FTC) Chairwoman Edith Ramirez and Assistant Attorney General William Baer testified before the House Committee on the Judiciary’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law on May 15, 2015. The oversight hearing provided an opportunity for the heads of the U.S. antitrust enforcement agencies to survey their agencies’ priorities and recent … Continue Reading

Chinese Magnesite Producers Antitrust Class Action Complaint Dismissed

On July 24, 2014, the district court in Animal Sci. Prod., Inc. et al. v. China Nat’l Metals & Minerals Imp. and Exp. Corp. et al., Case No. 2:05-cv-04376 (D.N.J.), dismissed direct purchaser plaintiff’s Amended Complaint without prejudice in favor of magnesite producers accused of engaging in a price fixing scheme for magnesite and magnesite … Continue Reading

MOFCOM Asks Second Circuit to Reverse Judgment Against Chinese Vitamin Manufacturers

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 … Continue Reading

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

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.… Continue Reading

China’s MOFCOM Launches Electronic Merger Filing System

Beginning on October 28, 2013, all merger control cases before China’s Ministry of Commerce (MOFCOM) will have to be filed, and only be filed, in electronic form.  In the past, it was required by MOFCOM to provide both hard and soft copies (i.e., paper or scanned copies) of all materials submitted.  The new filing system … Continue Reading

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

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 … Continue Reading

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

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 … Continue Reading

Distribution in China – Legal Issues

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 … Continue Reading

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

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 … Continue Reading

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

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 … Continue Reading

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

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, … Continue Reading

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

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. … Continue Reading

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

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, … Continue Reading

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

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 … Continue Reading

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

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 … Continue Reading

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

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 … Continue Reading

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

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 … Continue Reading

Price-Fixing Cartels: China Crackdown Continues

by Henry L.T. Chen, Frank Schoneveld, Jared Nelson and Sean Pan Several major actions taken against price-fixing cartels by China’s enforcement authorities in the last year have sent a clear message that this is not a temporary campaign.  It is a new reality. To read the full article, click here.… Continue Reading

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

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) … Continue Reading

When Is Resale Price Maintenance Legal in China?

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 … Continue Reading

China Streamlines Antitrust Notification Process

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 … Continue Reading

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

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. … Continue Reading

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

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).  … Continue Reading
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