Predatory Pricing in China – In Line with International Practice?

Legal Issues of Economic Integration, pp. 305-316, 2010

12 Pages Posted: 25 Nov 2010

Date Written: November 23, 2010

Abstract

China's Anti-Monopoly Law (AML) prohibits a dominant company from selling products at prices below cost without legitimate reasons.

Chinese antitrust agencies and courts have provided some signals as to how they will enforce the predatory pricing provision in the AML and similar provisions in other laws. For example, in 2009, the National Development and Reform Commission (NDRC) circulated for comments a draft regulation implementing aspects of the AML, including its predatory pricing provision.

However, all in all, the law on predatory pricing is still relatively undeveloped in China at this stage. As US and EU courts have long dealt with the fundamental questions raised by predatory pricing claims, we assess the existing and draft rules in China against the backdrop of US and EU jurisprudence. We focus in particular on four factors: existence of dominance/monopoly power; definition of the benchmark used in a cost test; injury to competition; and absence of pro-competitive justifications.

Keywords: Antitrust, Competition Law and Economics, Predation, Predatory Pricing, Abuse of Dominance, China, NDRC

Suggested Citation

Emch, Adrian and Leonard, Gregory K., Predatory Pricing in China – In Line with International Practice? (November 23, 2010). Legal Issues of Economic Integration, pp. 305-316, 2010, Available at SSRN: https://ssrn.com/abstract=1713782

Gregory K. Leonard

Charles River Associates ( email )

601 12th Street
Ste. 1500
Oakland, CA 94607
United States
510-595-2706 (Phone)

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