Abuse of Dominance: New Developments in the Tetra Pak Decision
摘要
On 16 November 2016, the State Administration for Industry and Commerce of the People's Republic of China (“SAIC”) published its administrative penalty decision to fine Tetra Pak for abuse of dominant market position. The SAIC imposed a fine totaling RMB 667.7 million bringing an end to a case that started in January 2012 and lasted for almost five years. The SAIC for the first time defined a “loyalty discount” as an “other forms of abuse of dominant market position confirmed as such by the Anti-Monopoly Enforcement Authority under the State Council” regulated under Article 17(1) (vii) of the Anti-Monopoly Law. By doing so, the theory of loyalty discounting (already widely acknowledged in the EU and the US) has been adopted as the seventh approach to regulate abusive conduct. This decision has great practical significance, and also brings new challenges and requirements to companies’ compliance mechanisms. This article will review the case and the important legal issues it raises.
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