China's Supreme Court Ruling Likely To Prompt More Follow-on Antitrust Litigation

In Short

The Development: China's Supreme People's Court recently ruled for the plaintiff in Miao Chong v. SAIC-GM, which marked a rare triumph for a plaintiff in antitrust litigation as a follow-on to an administrative penalty decision. The plaintiff-consumer alleged that a joint venture between General Motors China and SAIC adopted resale price maintenance in the sale of cars that harmed competition.

The Result: The case indicates a shift of the Chinese courts' approach toward resale price maintenance and, more broadly, their recognition of Chinese antitrust enforcers' administrative decisions.

Looking Ahead: The Miao Chong decision will encourage plaintiffs to file more follow-on antitrust damages claims, and defendants in administrative penalty decisions will be more likely to challenge them in the Chinese courts given the precedent weight that courts will afford to them following the Miao Chong decision. Both forces are likely to prompt a wave of