Vertical Price Restrict By Multinational Company And Related Anti-trust Legal Issues Study

Vertical Price Restrict, as a special type of Agreements or Concerted Practices between undertakings, is provided in Anti-trust Law (or Competition Law) of many countries. Regarding how to identify, assess and rule Vertical Price Restrict, the US, EU and many other countries have enforced their substantive antitrust rules, established their institutions, and accumulated related legal experiences. Multi-National Companies (MNC) are special undertakings which are more apt to adopt vertical price restrict practices in their global business operations, due to their special multinational structure and their global unified interests strategy. As some vertical price restrict by MNC may bring negative impact to the competition or market status in certain countries, also with the world going more and more globalization, many countries or economics groups are paying more attention or taking more proactive measures to rule Vertical Price Restrict by MNCs. China now is the largest Foreign Direct Investment target developing country, MNCs are playing important roles in nowadays China's economy and market .While China didn't have legal code or legal practices on Vertical Price Restrict before it promulgating"the Anti-trust Law of P.R. China"in Aug 2007. As China is enforcing the Anti-trust Law in August 2008, in this article we will review and study the provisions stated in the new Anti-trust Law of China and how we can enforce related regulations under the special economic and market environment of China, referring to the regulation or legal practices/experience from the US and EU regarding Vertical Price Restrict.