On November 14, the National Development and Reform Commission
("NDRC") announced its decision to fine two private
pharmaceutical companies nearly RMB 7 million for violating the
Anti-monopoly Law ("AML")1. The penalty
decision was released right after the NDRC publicly confirmed its
investigation over China Telecom and China Union for alleged abuse
of dominance in the broadband market. It seemed that the NDRC could
not wait to show its determination to enforce the AML with another
striking case.
Facts
The penalized companies, Weifang Shuntong Pharmaceutical Co.
Ltd. ("Shuntong") and Weifang Huaxin Pharmaceutical
Trading Co. Ltd. ("Huaxin") are both pharmaceutical
distribution companies in the business of selling promethazine
hydrochloride, the key ingredient for "compound reserpine
tablets", a popular hypertension medicine listed among
China's national essential drugs.
