Resale Price Maintenance in China: An Economic Perspective

Abstract

This article analyzes resale price maintenance (RPM), its economic principles, and its application in the United States, Europe and China. The application of RPM varies across each of these three jurisdictions. In China, there are competing economic goals, no clear standard (per se illegality versus rule of reason) and case outcomes that do not necessarily fully embrace an economic based approach. We identify those areas in Chinese antitrust jurisprudence that will shape enforcement and offer an economic approach that allows for internal consistency for decision-making.

Keywords: resale price maintenance, RPM, economics, antitrust, competition law, China, comparative

JEL Classification: K21, L42, L11