By Michael Zhang and William Zheng of Sheppard Mullin Richter & Hampton LLP
On August 30 2007, the National People's Congress passed the Anti-monopoly Law of the People's Republic of China (AML). Its passage marks a historical moment in China's legal history. After over 10 years of drafting and preparing an anti-monopoly law, China has finally joined the ranks of countries with advanced antitrust legal provisions. The AML will come into effect on August 1 2008 and, based upon its language, should succeed in its aim of ensuring fair competition in the Chinese market.
INTERNAL PRICE FIXING ARRANGEMENTS
The AML defines two types of anticompetitive agreements:
(i) Between the competing undertakings (Horizontal Monopoly Agreement); and
(ii) Between the undertaking and certain transaction party (Vertical Monopoly Agreement).
The Horizontal Monopoly Agreement deems that so-called ¡°hard core cartels¡± in the market shall be strongly prohibited and investigated. However, findings of a Vertical Monopoly...
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