Termites and Abuse of Dominance

In late August 2010, it was reported in the press that at least 10 antitrust private actions have been heard in the courts in China (see Two years on, ten private antitrust actions). This article describes one of the cases – Huzhou Yiting Termite Prevention Service Co., Ltd vs. Huzhou Termite Prevention Research Institute (an alleged abuse of dominance case) – in detail.

Facts

The plaintiff was Huzhou Yiting Termite Prevention Service Co., Ltd (HY). HY was established in November 2008 as a corporation for the purpose of engaging in the business of supplying termite prevention services.

Pursuant to Article 6 of the Termite Prevention Management Rules for Urban Houses issued by the Ministry of Construction in 2004, corporations wishing to engage in the business of supplying termite prevention services must fulfil a number of requirements, including: possessing a registered capital of RMB 30 million or above; and employing full time professional and technical