Would NDRC’s Vertical Pricing Monopoly Fine against MaoTai and WuLiangYe Have Influences on Other China Companies?

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(By You Yunting) Over the past few days, the writer shared two essays concerning the administrative punishment ordered against Mao Tai Company and Wu Liang Ye Company, the top distilleries in China, over the accusation that they violated the Anti Monopoly Law by concluding monopoly agreements restricting or fixing retail prices (the “monopoly agreements”) with their dealers. The writer has received heated comments and arguments from the subscribers and followers of his Weibo and Blog. Many of these comments support the punishment, but some friends have expressed concerns over the issue. Today, the writer will share his opinions on whether the punishment will influence the normal commercial order.

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How MaoTai and Wu Liang Ye Would Defend Against Vertical Pricing Monopoly Fines ordered by China NDRC?

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(By You Yunting) Abstract: Both Mao Tai and Wu Liang Ye can rely on one of the seven situations in Article 15 of the Anti Monopoly Law for their defense. But, that defense will not be easy because it requires evidence that the relevant agreements will not limit market competitors and that consumers can share the interests produced by the agreements.

In yesterday’s post, the writer analyzed the legal meaning of the punishment ordered by the National Development and Reform Commission (“NDRC”) against two top Chinese distilleries, Mao Tai and Wu Liang Ye. Today’s post will go one step further to describe the way for Mao Tai and Wu Liang Ye can protect their own interests.

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