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By: Susan Ning, Angie Ng and Shan Lining

Last week (between 26 to 27 May 2011), it was reported in the press that Unilever has raised the prices of specific products (including Lux and Hazeline branded shampoos and shower gels) by 10% in some cities including Beijing, Shanghai and Guangzhou (Unilever’s price increases).  This was touted as a surprising move given that Unilever was recently fined by the price authority, the National Development Reform Commission (NDRC) in relation to conduct to do with its proposed price increases just earlier in the month (see below for more details to do with this fine) (Unilever’s price signaling conduct).

This article outlines details to do with Unilever’s price signaling conduct and subsequent price increases and examines whether or to what extent such conduct would be considered in breach of the Price Law and the Anti-Monopoly Law in China.Continue Reading Price signaling and price hikes – a breach of the Price Law or Anti-Monopoly Law?

By: Susan Ning, Shan Lining and Angie Ng

On 6 May 2011, the National Development and Reform Commission (NDRC) announced that a manufacturer of household and personal care products (the Manufacturer) has been fined a total of RMB2 million for breaching the Price Law.  The NDRC also appeared to have made some Anti-Monopoly Law (AML) references in relation to this case.Continue Reading Price hikes and price signaling

By Susan Ning, Liu Jia and Angie Ng

On 25 April 2011, the Supreme People’s Court (the Court) published draft rules which govern Anti-Monopoly Law (AML) private actions (Draft Rules)1.   These Draft Rules are entitled "Provisions on Issues Concerning the Application of Law in relation to Trials of Monopoly Civil Dispute Cases".  The Court will consult on these Draft Rules till 1 June 2011.

We note that these Draft Rules provide for applicants to file "joint" applications with others against respondents.  This article outlines what the Draft Rules say about joint applications and outlines how this interacts with the joint application regime pursuant to China’s Civil Procedure Law.

Continue Reading AML Class Actions and The Draft Litigation Rules

By Susan Ning, Shan Lining, Ji Kailun and Liu Jia

 

On 25 April 2011, the Supreme People’s Court (the Court) published draft rules which govern Anti-Monopoly Law private actions (Draft Rules).  These draft rules are entitled "Provisions on Issues Concerning the Application of Law in relation to Trials of Monopoly Civil Dispute Cases".

 

This article outlines the salent provisions of, and points to some interesting features of, these Draft Rules.
Continue Reading A Further Look At The Draft Rules Governing AML Private Actions

By Susan Ning, Yin Ranran

On 25 April 2011, the Supreme People’s Court issued for public comments draft rules which govern civil action in relation to Anti-Monopoly Law (AML) disputes.  These rules are entitled "Provisions on Issues Concerning the Application of Law in the Trial of Monopoly Civil Dispute Cases"("Draft Rules").  Prior to the release of these Draft Rules, there haven’t been any detailed rules in relation to AML civil action.  The court will consult on this Draft Rules till 1 June 2011.

The Draft Rules contain 20 articles covering jurisdiction, standing of plaintiffs, burden of proof, evidentiary rules, relationship of antitrust administrative investigations and the judicial process, form of civil liabilities and the statute of limitations.  The objective of these Draft Rules is to ensure proper adjudication of civil monopoly disputes cases, prevent monopolistic conduct, protect fair competition in the market and safeguard the interests of consumers and public interest. Continue Reading Supreme People’s Court Issues Draft Rules Governing Private Actions under the Anti-Monopoly Law

By Susan Ning and Yin Ranran

On 2 April 2011, the National Development and Reform Commission (NDRC) hosted a conference with 17 industry associations (relating to businesses selling major consumer products such as household electrical appliances, food, beverages and dairy products) in Beijing.  Specifically, the NDRC’s Price Department and Economic and Trade Department convened the conference as an effort to address the recent price hikes in commodities (see our articles entitledPrice Hikes for Washing Powders, Soaps and Shampoos Expected in April and Businesses Should Be Cautious in Making Advance Price Increase Announcement ). 

The NDRC hosted conference was also regarded as an effort of NDRC to address China’s increasing consumer price index (CPI) – which is a major indication of the rate of increase of inflation in China.  According to data released by the National Bureau of Statistics on April 15, China’s CPI rose 5.4% in March 2011 (from a year ago), hitting a 32-month high.
 Continue Reading NDRC Held Talks with 17 Industry Associations

By Susan Ning, Liu Jia and Angie Ng

It’s been slightly over a month since the enactment of a national security review (NSR) process for foreign acquisitions of domestic businesses.  Thus far, it is not clear how many (if any at all) foreign-local deals have undergone the NSR process,  Pursuant to the rules and regulations1  which govern the NSR process, there is no obligation on the part of the Chinese government to publish any determinations (whether deals are approved or not) in relation to deals which undergo the NSR process.Continue Reading Local commerce administrative agencies and the national security review process

By Susan Ning, Huang Jing and Angie Ng

 

We understand from press reports that the China Automobile Dealers Association (CADA) has complained that a large automobile manufacturer has allegedly been imposing unreasonable restraints on its distributors, including determining a minimum resale price and allocating territory.  There has been some suggestion in the press that the conduct allegedly undertaken by the automobile manufacturer is in breach of the Anti-Monopoly Law (AML).

 

This article identifies the AML provision governing such vertical restraints; and also outlines how certain vertical restraints in relation to the motor industry are being dealt with in Europe.Continue Reading Complaint re resale price maintenance in the automobile industry

By Susan Ning, Yin Ranran and Angie Ng

An instant noodle manufacturer recently announced that it decided to increase prices for its "container instant noodle" (referring to both instant noodles packaged into a variety of "cup-like" or rectangular containers) from 1 April 2011. In China, this instant noodle manufacturer is considered one of the leading brands in relation to the instant noodle industry.  According to press reports, the instant noodle manufacturer has announced that due to increased transportation and raw materials (e.g. flour and palm oil) costs, it intends to raise the prices for most of its container instant noodles to RMB 0.5 per unit – this amounts to an increase of between 10% to 15% from current prices. [Note:  In the past month, several manufacturers of household and daily care products also made announcements that they were intending to increase prices of specified products due to an increase in price in raw materials.  See our article entitled Price Hikes for Washing Powders, Soaps and Shampoos expected in AprilContinue Reading Businesses Should Be Cautious in Making Advance Price Increase Announcement

By Susan Ning, Yin Ranran, and Angie Ng

Recently, there has been a flurry of press reports on the proposed price increases by several major manufacturers of household and personal care products, including multinationals such as Procter & Gamble and Unilever, as well as domestic manufacturers such as "Liby" and "Nice".  Pursuant to the press reports, all four manufacturers mentioned above have separately announced that the retail prices for their respective brands of washing agents (including washing powders, soaps and shampoos) will increase by as much as 10% commencing from early April 2011.  Commentators have said that this is the largest price hike that they have seen in relation to the household and personal care products industry, in the past 3 years. Continue Reading Price Hikes for Washing Powders, Soaps and Shampoos Expected in April