Recently, the State Administration for Industry and Commerce (hereinafter referred as “SAIC”) has fined the packaging giant Tetra Pak 668 million yuan (US$97 million) for breaking anti-monopoly laws and abusing its monopolistic market position. Tetra Pak is one of the world's largest liquid food packaging suppliers and entered China in 1972 and now it has six companies in China.
During more than four years investigation, SAIC interviewed relevant parties, conducted on-site investigations, and checked records and digital evidence. According to SAIC’s investigation, it is found that Tetra Pak have used its dominant position to force businesses to purchase of its packaging, restrict suppliers' cooperation with its rivals and hamper fair competition from 2009 to 2013. It also barred other packaging raw material suppliers from providing materials to its rivals, which has hurt fair competition in the packaging materials market.
SAIC addressed that Tetra Pak was found to have broken anti-monopoly regulations such as abusing its monopolistic status to force customers to purchase packaging materials and sterile packaging equipment and services.
Dongjin comments:
- China government has gradually changed his attitude on the use of foreign capitals. At the same time, the administration on the anti-monopoly of the foreign owned companies has been strengthened. China has been stepping up efforts to crack down on violations against the Anti-Monopoly Law in recent years and has fined several multinational corporations. It treats the foreign owned company the same as the domestic company and offers no exemption or favorable policies.
- When the foreign investor takes its advantage and use its intellectual property such as the patent, the advanced technology, the brand or etc to take over the market and gain profit, it should also take care of the P.R.C Anti-monopoly Law and be ensure compliance with the legislation.
- The foreign owned enterprise shall take care of its internal legal control and avoid any violence of the laws and regulations.
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Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021
Email: jojohu@shanghaiinvest.com