We are China antitrust and anticompetition lawyers. Antitrust law is also called anticompetition law in China. Trusts and monopolies are concentrations of wealth in the hands of a few. When a few competitors agree to fix prices, rig bids or divide up customers, consumers lose the benefits of competition. To prevent trusts from creating restraints on trade or commerce and reducing competition, China has antitrust laws that apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution and marketing. The main antitrust laws in China: Antitrust Law of the People's Republic of China and Anticompetition Law of the People's Republic of China. The two laws seem to be the same, but they focus on different area.
Antitrust laws were designed to protect economic freedom and promote competition in the marketplace. As such, companies that are found to behave in an anti-competitive manner may be guilty of antitrust. Actions that may constitute antitrust behavior include creating an illegal monopoly, illegally reducing competition, bid rigging, group boycotts, geographic market allocation and price fixing. Antitrust laws apply to virtually every sector of industry, including manufacturing, transportation, distribution and marketing.
- Possibly the most well-known of the antitrust behaviors are price fixing and the illegal monopoly.
- Price fixing occurs when competing sellers agree on what prices to charge for their goods or services. This includes agreeing not to sell a product or service below a certain price.
- Monopolies occur when one company or firm gains control of the market by suppressing competition through illegal conduct.
- Bid rigging occurs when firms agree to bid on a good or service in such a way that a designated firm will submit the winning bid. Essentially, the firms agree beforehand which company will win the bid and then bid in such a way as to ensure that this happens.
- Customer allocation involves competitors agreeing to split up customers—for example, by geographic area—to reduce or eliminate competition.
Companies that violate antitrust laws cause great harm to consumers by depriving them of the benefits of competition, including lower costs of products and services. Cases alleging antitrust behavior have been tried against soft drink companies, vitamin companies, trash haulers and software companies. Companies found to have violated antitrust laws may face jail time and large fines. Furthermore, individuals who claim damages as a result of antitrust behavior can bring a lawsuit against the company found to have acted in a non-competitive manner.
Our attorneys have advised clients and litigated a wide variety of antitrust issues in the China courts and antitrust governmental agencies. We have experience with cases involving price-fixing, price discrimination, concerted refusals to deal, boycotts, monopolization, joint ventures, conspiracy, predatory conduct, mergers and acquisitions, horizontal and vertical restraints, franchises, false and deceptive advertising, unfair trade practices, telemarketing practices, and credit and collection practices.
Our lawyers have a particular expertise in the application of China unfair business law to antitrust actions. Our lawyers have been at the forefront of litigation involving the China unfair business practices statute, and our China antitrust lawyers are committed to using the statute to obtain relief for individuals and businesses who are the victims of anticompetitive practices. Our antitrust lawyer help our clients in the following areas,
A government investigation can carry the threat of severe penalties against both organizations and individuals. Our antitrust lawyers' experience in handling government cases provides us with the knowledge to represent clients from the initiation of investigations to trials and appeals, including negotiating with the prosecutors on production of evidence and plea bargains, when appropriate.
Private Antitrust Litigation
Antitrust proceedings brought by competitors and consumers have always been part of the China litigation landscape, and now the availability of private actions has spread to other countries. Moreover, becasue government investigations often lead to private litigation, expertise in private litigation is critical. Our antitrust attorneys are experienced and skillful in defending alleged antitrust violations, including restraint of trade, monopolization, and price discrimination, as well as in bringing antitrust claims for our clients to ensure there is a level competitive playing field. We understand the significant cost of such litigation, including costs associated with document discovery, and we are well-equipped to reduce that cost by staffing cases efficiently and employing efficiency-enhancing tools.
A key part of private litigation in China., which is now being followed abroad, is the use of the class action device. When a client is faced with an antitrust class action, our antitrust lawyers draw upon extensive experience in all aspects of such litigation.
Mergers, Joint Ventures and Strategic Alliances
Our China antitrust attorneys provides a crucial element to completing a merger, acquisition or joint venture successfully: highly experienced antitrust counsel who can take the deal from start to finish.
Planning and Compliance
We encourage our clients to consult with us in their development of distribution, marketing and strategic growth plans. In addition to helping develop and implement customized audit and compliance programs, we assist in conducting internal investigations to uncover potential wrongdoing with the goal of limiting the company's exposure to civil and criminal antitrust claims.
The interconnected global economy creates new opportunities but there are heightened competition concerns. Businesses are more exposed to competition laws and enforcement actions of governments around the world. In this environment, Our China antitrust lawyers' antitrust and competition practice is a key resource for developing and coordinating competition strategies on a global scale, responding to government investigations and enforcement actions, defending private lawsuits, as well as helping clients have a level playing field for competition.