21 August 2013
Part II – Recent NDRC Investigations
In the second of a special three-part legal update advising clients on the significant increase in Anti-Monopoly Law (AML) enforcement activity, we focus on the National Development and Reform Commission (NDRC), the regulator responsible for enforcing the law's conduct rules to the extent they directly relate to pricing matters (e.g., price-fixing cartels or unfair high pricing by dominant firms etc.).
In part 1 of this update, we highlighted recent enforcement activity by the State Administration of Industry and Commerce (SAIC). In this update, we look at the NDRC's high profile investigations into the pricing of infant formula, jewellery and drugs, in what appears to be an enforcement agenda targeted at foreign companies operating in China. In light of the recent series of investigations and new record fines for resale price maintenance (RPM) practices, clients should be mindful of the focus on multinationals and be on the alert for any pricing practices that could raise issues under the AML.