The first judgment to test China’s new Anti-monopoly Law (AML) has been issued regarding a vertical monopoly agreement, carrying with it a warning to plaintiffs that they have a heavy burden of proof in order to win such a case.
Shanghai No. 1 Intermediate People’s Court pronounced its first-instance judgment on the lawsuit on May 18. The defendant, Johnson & Johnson, won the case, while the court rejected all claims of the plaintiff, Beijing Rui Bang Yong He Technology & Trade.
Rui Bang was the Beijing distributor of medical suture supplies for Johnson & Johnson’s two subsidiaries in China. In July 2008, Johnson & Johnson stopped its equipment supply to Rui Bang and withdrew its authorisation, causing a substantial loss for Rui bang. Johnson & Johnson accused the Chinese company of lowering its selling price without permission and selling the equipment in non-authorised areas.
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