Johnson & Johnson's monopoly dispute

| BY

clpstaff &clp articles

Johnson & Johnson has won its vertical price fixing dispute

In March 2008, Johnson & Johnson found Rainbow Medical Equipment & Supplies, which had been distributing J&J's suturing products for 15 years under annually-renewed distribution agreements, was selling the products below the minimum contracted price and winning business outside its allocated region of Beijing. J&J terminated Rainbow's distribution rights in July that year and ceased delivery in August 2008.

Rainbow subsequently filed a lawsuit alleging that J&J engaged in resale price maintenance, violating Article 14 of the PRC Anti-monopoly Law (中华人民共和国反垄断法), which prohibits setting a minimum price and claimed damages of Rmb14.4 million ($2.3 million).

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]