Dealing with Resale Price Maintenance (RPM)

DIW Econ Economic Bulletin, No. 6
In August 2013, the Shanghai Higher People’s Court ended China’s first case on private anti-trust action against vertical rest raints. In Rainbow v. Johnson & Johnson, the court found that Johnson & Johnson has violated China’s Anti Monopoly Law (AML) by imposing minimum resale prices on its distributors. However, the court stressed that pricing agreements such as Resale Price Maintenance (RPM) are not ‘per se’ illegal. Rather, it needs to be demonstrated for each specific case that the conduct in question does restrict competition.
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