China News Service Beijing1month11Nippon (Reporter Zhou Rui) The issue of Kweichow Moutai fining its dealers for lowering prices has triggered heated discussions among all parties. Deputy leader of the Expert Advisory Group of the Anti-Monopoly Commission of the State Council,Huang Yong, Director of the Competition Law Research Center of the w88 casino11pointed out in an interview with a reporter from China News Service that according to the relevant provisions of China's Anti-Monopoly Law on "vertical monopoly agreements", Moutai's move may lead to anti-monopoly investigations.

A few days ago, some media broke the news that Moutai issued a notification document to the internal customer system, which contained punitive measures against Chongqing Yongzhou Yongzhou Huangzhuo Trading Co., Ltd., Tibet Yaxiong Famous Wine and Food Sales Department, and Yulin Baixingsheng Liquor Co., Ltd. to the above3dealers were suspended from executing the Moutai Liquor contract plan due to low prices and cross-selling goods, and deductions were made20%Margin, yellow card warning.

Some analysts say that with the changes in the supply and demand relationship, it is difficult to sustain the high price of high-end liquor that is out of the range of costs and reasonable profits. If it continues to refuse to "lower its profile", it may gradually be marginalized both in terms of social responsibility and market demand. Compared with these problems that may gradually emerge in the future, the troubles caused by Moutai's "price limit order" may be reflected in a short period of time.

Six international LCD panel manufacturers including Samsung were sanctioned by the National Development and Reform Commission for price monopoly3.53Promoted by the billion-yuan news, “antitrust” has recently become a hot word on the Internet. Some netizens asked whether Moutai's minimum price limit is also a price monopoly.

“Moutai’s ‘price limit order’ is suspected of price maintenance and fixation, and it is definitely suspected of vertical monopoly.” Han Liang, partner in charge of antitrust business at Freshfields Bruckhaus Bruckhaus Deringer in China(Michael Han)told a reporter from China News Service that Article 14 of China’s Anti-Monopoly Law clearly prohibits operators and transaction counterparts from “reaching a minimum price that limits the resale of goods to third parties.”

Han Liang said that vertical monopoly eliminates competition within the same brand. Taking Moutai as an example, if its dealers can compete with each other, its prices will definitely not be as inflated as they are now, and consumers will also benefit from it. He said that the recent anti-monopoly investigation launched by the National Development and Reform Commission against automobile manufacturers involves vertical monopoly issues. From this perspective, Moutai's "price limit order" is also likely to lead to anti-monopoly investigations.

w88 online sports betting analyzed that in terms of the specific operation of "vertical monopoly" investigations, there are currently two paths internationally: one is the "per se illegality principle", that is, as long as there is a "limited minimum price", it is determined to be illegal; the other is the "reasonable analysis principle", this model requires further evaluation of the impact of "limited minimum prices" on competition.

w88 online sports betting said that currently, the EU adopts a clause similar to the "per se illegality principle". United States Supreme Court200715246_15314

Currently, there are no law enforcement cases regarding "vertical price monopoly agreements" in China. w88 online sports betting emphasized that in order to avoid risks, many multinational companies comply with the stricter "per se illegality principle". "For example, they use "recommended price" instead of "minimum resale price" and there will be no punitive clauses."

w88 online sports betting pointed out that compared with multinational companies, there are many companies in China like Moutai that still stipulate "minimum resale prices", which means that once the Anti-Monopoly Bureau of the National Development and Reform Commission adopts the "per se illegal principle", these companies will be directly identified as price monopolies.

"If the official chooses the 'reasonable analysis principle', then they need to further intervene." w88 online sports betting pointed out that to analyze the impact of "minimum price" on competition, it is necessary to evaluate the competition and market share of the relevant markets for products or services, and analyze the impact of this practice on downstream and consumers. It is also necessary to listen to the reasons for the defense of relevant companies.

w88 online sports betting emphasized that if the Anti-Monopoly Bureau of the National Development and Reform Commission intervenes in this matter, no matter which method is used, it will attract attention and discussion from all parties and become another landmark node in China's price anti-monopoly process.

Attachment: Original report link

http://finance.chinanews.com/cj/2013/01-11/4481529.shtml

Reprinted by other media:
People's Daily Online:http://shipin.people.com.cn/n/2013/0112/c85914-20177765.html

Guangming.com:http://9.gmw.cn/2013-01/12/content_6346727.htm

China Net:http://finance.china.com.cn/consume/scgc/20130111/1233513.shtml

Sina:http://finance.sina.com.cn/chanjing/gsnews/20130111/181714263398.shtml

Sohu.com:http://business.sohu.com/20130111/n363198834.shtml

China Quality Inspection Network:http://www.cqn.com.cn/news/cjpd/663716.html