NDRC imposes a second record anti-monopoly fine
February 22, 2013 | BY
clpstaff &clp articlesChina's National Development and Reform Commission has levied a second record fine this year for price fixing, which highlights its increasingly aggressive stance
Two of China's premium liquor producers, Kweichow and Wuliangye, have been hit with fines of Rmb449 million ($72 million) by China's top regulator, the National Development and Reform Commission (NDRC) for engaging in monopolistic pricing, according to reports from the Global Times this week.
“This is an issue that breaches the Law. Companies have now had four years since the Law was issued, that is four years notice that resale price maintenance is illegal – this is the attitude the NDRC seems to be taking,” said Frank Schoneveld of MWE China Law Offices in Shanghai.
The fines follow statements released in January from both companies that they would correct any policies in violation of the PRC Anti-monopoly Law (中华人民共和国反垄断法). Both producers engaged in resale price maintenance (RPM) of their premium liquor by punishing distributors who sold below a set price.
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