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Legal Update

China Punishes Cartel Participants - But Yet to Unleash AML

3 June 2010
Mayer Brown JSM Legal Update

China’s National Development and Reform Commission (“NDRC”) recently announced regulatory action against a group of rice noodle manufacturers in Guangxi province, due to the involvement of those manufacturers in a joint action to increase prices in the region. However, while a number of businesses involved in the cartel have been fined, reports that the case signals the commencement of more vigorous regulatory enforcement of the Anti-Monopoly Law conduct rules (rules prohibiting anti-competitive behaviour in the form of horizontal or vertical monopoly agreements, or abuse of a dominant market position) appear overstated.

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