Risks from China anti-monopoly lawsuits increase

Since the long-awaited PRC Anti-monopoly Law (AML) (中华人民共和国反垄断法) came into effect in August 2008, individuals and small business operators have been active in testing how robustly it will be enforced. A number of private actions against business giants have been brought under Article 50 of the AML. Baidu, Shanda Interactive Entertainment, China Mobile, Sinopec, China Netcom and Chongqing Insurance Association have been involved in such litigation. A multinational telecommunication company recently became the next potential defendant of private anti-monopoly litigation that may be initiated by the company's aggrieved distributors.

In light of the increasing number of private anti-monopoly litigation actions under the AML, it was reported that the Supreme People's Court had prepared a draft judicial opinion on the AML and held a consultation meeting in July 2009 to solicit opinions from panels consisting of judges, members from legislative bodies, officials from relevant administrative authorities, and legal scholars. Although the judicial opinion has not been made publicly available, several articles composed by judges and minutes of the consultation meeting (Consultation Minutes) have been published online. These fleshed out the content of the draft judicial opinion and the different views associated therewith.