What do you say about the Anti-Monopoly Law that Medtronic violates?

Recently, medical device giant Medtronic has violated the "Anti-Monopoly Law" because it reached a multilateral agreement with its counterparts to resell the price of the products involved in the sale of the products to the third party and to limit the resale of the lowest price of the products to the third party. Articles 1 and 2 of the Articles, which do not meet the exemption conditions and exemption conditions stipulated in Article 15 of the Anti-Monopoly Law, were ordered by the National Development and Reform Commission to immediately stop the implementation of price monopoly behavior and impose a fine of 118.85 million yuan.

This is the first case of China's anti-monopoly in the field of medical devices!

What are the provisions of Articles 14 and 15 of the Anti-Monopoly Law that Medtronic violated?

In order to prevent and stop monopolistic behavior, protect market fair competition, improve economic efficiency, safeguard consumer interests and social public interests, and promote the healthy development of the socialist market economy, China implemented the Anti-Monopoly Law on August 1, 2008.

The relevant provisions of the Anti-Monopoly Law are as follows:

Article 14 [Vertical Monopoly Agreement] It is forbidden for the operator to reach the following monopoly agreement with the counterpart of the transaction:

(1) The price of resale of goods to a third party;

(2) limiting the minimum price for reselling goods to a third party;

(3) Other monopoly agreements recognized by the anti-monopoly law enforcement agencies of the State Council.

Article 15 [Exemption from Monopoly Agreement] If the operator can prove that the agreement reached is one of the following circumstances, the provisions of Articles 13 and 14 of this Law shall not apply:

(1) To improve technology and research and develop new products;

(2) In order to improve product quality, reduce costs, increase efficiency, unify product specifications, standards or implement specialized division of labor;

(3) To improve the operational efficiency of small and medium-sized operators and enhance the competitiveness of small and medium-sized operators;

(4) To achieve social and public benefits such as energy conservation, environmental protection, disaster relief, etc.;

(5) Due to the economic downturn, in order to alleviate the serious decline in sales or the obvious overproduction;

(6) to protect the legitimate interests in foreign trade and foreign economic cooperation;

(7) The law and other circumstances as stipulated by the State Council.

In the case of items 1 to 5 of the preceding paragraph, if the provisions of Articles 13 and 14 of this Law are not applicable, the operator shall also prove that the agreement reached does not seriously restrict competition in the relevant market and enables consumption. Share the resulting benefits.

Article notes:

Vertical agreements are agreements between operators at different stages of production or sales (such as between producers and wholesalers, between wholesalers and retailers). Since most of the operators of the vertical agreement do not have a competitive relationship, this article defines the vertical agreement as the agreement between the operator and the counterpart of the transaction. Considering that the vertical damage of most vertical agreements is not as direct or obvious as horizontal agreements, many countries practice reasonable analytical principles in practice. However, for vertical agreements involving price content, in most cases the principle of illegality is adopted. The Act also imposes two prohibitions on the vertical and the restricted competition agreement between the seller and the buyer, one is the fixed resale price, and the other is the minimum resale price, because these restrictions not only seriously damage the seller’s pricing power, but also Seriously harm the interests of consumers. Taking into account the fact that the situation is more complicated, and the provisions of the bottom are also stipulated. Other types of vertical agreements, such as exclusive sales, exclusive purchases, restrictions on territory, etc., because they are reasonable in many cases, should apply reasonable principles.

Freeze Dried Fruit Powder

Introduction and application of freeze-dried fruit powder

Freeze Dried Fruit Powder,Wolfberry Powder,Organic Juice Powder,Food Grade Anthocyanin

Shaanxi Changsheng Industrial Co., Ltd. , https://www.cncsbio.com