NDRC cracks down on anti-competitive behaviour
The landmark fine imposed on international LCD manufacturers shows China's changing attitude to anti-competitive behaviour
On January 4 2013, the National Development and Reform Commission (NDRC) fined Samsung, LG and four Taiwanese companies Rmb353 million ($57 million) for engaging in price fixing practices between 2001 and 2006.
The NDRC is an administrative agency that oversees and enforces illegal pricing related activities that go against the PRC Anti-monopoly Law (中华人民共和国反垄断法) (AML) and the PRC Pricing Law (中华人民共和国价格法). The fine imposed on the multinationals has attracted much media attention.
“This is the first time that China is jumping on the bandwagon of international cartel enforcement and the other reason that sets this apart is the massive fine by Chinese standards,” said Marc Waha, an antitrust partner at Norton Rose in Hong Kong.
The issue of timing
Due to the time when the illegal conduct took place, the 1998 Pricing Law was applied instead of the AML, which was promulgated in 2008.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- 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
Already a subscriber? Log In Now