Vertical Agreements China
In addition, if a vertical agreement can result in improved product/service quality, lower prices, facilitated market entry or promoted innovation, the company may apply for an efficiency exemption under Section 15 of the AMA. On the other hand, competition rules on contract law and judicial interpretation of technology contracts apply only to technology contracts. Similarly, the Import and Export Technology Management Regulation applies only to imports and the export of technologies under this Regulation. Article 10 of the judicial interpretation of technology contracts prohibits the inclusion of clauses that restrict the freedom of a technology receiver to exploit research and development or clauses imposing unequal conditions for sharing technological improvements. Reactions focused on areas such as legislative purpose, the implementation of competition policy, the competition loyalty verification system, monopoly agreements, abuse of dominance, the notification system for corporate concentration, the misuse of administrative powers to eliminate or limit competition, investigations into alleged illegal practices, and increased legal liability for infringement. Have decisions or guidelines on vertical restrictions, in any way, dealt with restrictions on the territory in which a buyer who sells on the Internet is allowed to resell contract products? There is still some overlap between the price law and the anti-monopoly law. In theory, government authorities could always choose the anti-monopoly law and the price law as the basis for their application with respect to vertical restrictions, and the results of these two laws could be very different; However, recent enforcement suggests that in the event of a conflict between the provisions of the anti-monopoly law and other laws, the anti-monopoly law prevails in principle. That is why, in the rest of this chapter, although we assume that the provisions of the other statutes will continue to apply, our analysis is based primarily on the anti-monopoly law. The Anti-Monopoly Act (AML), which will come into force on 1 August 2008, is the main antitrust law in China. The MRA prohibits monopolistic agreements that limit or limit competition, unless the agreements meet the criteria for exemptions. In general, the Derogatory Provisions of the AmL require that the overall effectiveness and benefits of the agreements outweigh the negative effects of the agreements on competition. If the vertical monopoly agreement had been concluded but had not yet been implemented, a fine could not be imposed on more than RMB500,000. Is the only objective of the Vertical Restrictions Act economic or is it intended to promote or protect other interests? Third, there are a large number of investigations into cartels and abuse of dominance against vertical agreements in China.
In the automotive industry, for example, Audi 2014 was fined RMB248.6 million for post-sales and post-sale services for rotation and monitoring. In 2015, Mercedes-Benz was fined 375 million euros for car sales and price agreements on car sales and prices imposed. Dongfeng-Nissan was fined RMB123.3 million in 2015 for selling cars, SAIC-GM was fined RMB201 million for car sales and fined RMB162.8 million for car sales.