By Liu Cheng Martyn Huckerby and Yu Chenchen King & Wood Mallesons’ M&A Group
Whether a resale price maintenance (“RPM”) provision is deemed to infringe the Anti-Monopoly Law (“AML”) regardless of whether it has an impact on competition has been one of the most cloudy issues under the AML since the law came into effect in 2008. A recent decision by the Shanghai No.1 Intermediate People’s Court (“Shanghai Court”) has found that for RPM to infringe the AML it must have an adverse impact on competition. While it is still too early to say if this court decision will be followed by other Chinese courts, the decision provides valuable guidance for companies when considering how the AML will apply to their distribution agreements in China.
Continue Reading Resale Price Maintenance – Not Per Se Illegal Under the AML