Giving the Chinese Anti-Monopoly Law Some Bite?

By , October 28, 2009

The Wall Street Journal’s China blog, China Real Time, recently reported on two new cases filed under China’s new anti-monopoly law (AML). 

Since going into effect in August 2008, the Chinese government has used the AML mostly to prevent mergers by international companies (in March 2009, the merger of Coca-Cola with Chinese juice maker Huiyan was prohibited under the AML).  The two cases discussed in the WSJ’s article involves completely domestic entities and were brought privately (instead of being prosecuted by the government).  One took issue with the pricing strutre of the defendant and was eventually settled and the other alleged abuse of dominant market power.  This suit was dismissed on other grounds. 

While it is still too early to tell, it appears that the Chinese legal system is moving forward in using the AML as more than just a tool to prevent mergers. 

See Wall Street Journal article here.

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