Previous business/academic article Next business/academic article
Business Articles Awards > Asian Antitrust

Managing Distribution and Antitrust Compliance Issues in China: Post Medtronic & GM

Ken Dai, Jet Deng, CPI Asia Column, February 27, 2017

See Jet Zhisong Deng's resume See Ken Dai's resume

Vote for this articleHelp

* Average
** Interesting
*** Good
**** Excellent
***** Must receive an Award!

Please note that the star(s) appearing on the article page before you have voted reflect the status of all votes registered to date.

Readers’ vote will close on February 9, 2018. Readers’ vote will allow you to nominate 1 article for each of the Awards, i.e., 10 Academic articles, 10 Business articles, and the best Soft Laws. The readers’ short-list of Academic and Business Articles will be communicated to the Board together with the 20 articles nominated by the Steering Committees. The Board will decide on the award-winning articles. Results will be announced at the Awards ceremony to take place in Washington DC on the eve of the ABA Antitrust Spring Meeting on April 10, 2018.

Click here to read the full article online

According to article 14 of the AML, NDRC and its delegated local authorities investigated several major cases concerning RPM in 2016, including Medtronic Case and GM case, which indicates that enterprises in China face relatively high antitrust compliance risk in distribution practices. Ever since the AML came into effect, RPM has drawn attention from the perspectives of public and private antitrust enforcement. There are 13 cases investigated and fined by NDRC and its delegated local authorities, covering different sectors such as healthcare, autos and premium liquor. Regarding private enforcement, Johnson & Johnson case and Gree case imply that courts in China tend to adopt the rule of reason to determine the legality of RPM. In order to embody the article 14 of the AML, SAIC and NDRC is drafting a series of provisions and guidelines to provide a clearer standards for antitrust enforcement and compliance. Although no cases involving non-pricing vertical restraints has been released so far, there are signs that enforcement authorities have realized the potential adverse effect of such agreements on competition. They may take steps to regulate non-pricing vertical restraints in the near future. In regard of legislations stipulating vertical restraints, apart from article 14 and 15 of the AML, a number of guidelines will probably come into effect in 2017. In brief, antitrust risks enterprises face in China post Medtronic & GM may be increased, which reminds enterprises better to strengthen management level of antitrust compliance and ability to cope with investigations and lawsuits.

Download our brochure