Rules Governing Resale Price Maintenance in China

Antitrust or competition law rules governing vertical restraints (such as resale price maintenance) are significant in China because as a manufacturing "hub", vertical contracts or agreements such as manufacturer-distributor agreements are very common.

This article outlines the rules governing resale price maintenance (RPM), pursuant to the Anti-Monopoly Law (AML); and compares these rules to the rules governing RPM pursuant to the European competition law.

China

Article 14 of the Anti-Monopoly Law (AML) prohibits the fixing of resale prices (and in particular minimum resale prices) to third parties. In other words, Manufacturer A is prohibited from stipulating that Distributor B must resell Manufacturer A's goods at a certain price to Retailer C.