Monday, November 5, 2007
Posted by D. Daniel Sokol
Now that the Chinese Ant-Monopoly Law is coming into force, we have a number of antitrust lawyers trying to make sense of the law for their clients. The team of Michael N. Sohn, Luc Gyselen and Jonathan Gleklen at Arnold & Porter provide their thoughts in the article Innovation and Monopolization: Will the New Chinese Antimonopoly Law Follow U.S. and EU Precedents? which appeared initially in the BNA Antitrust and Trade Regulation Report.
ABSTRACT: In both the U.S. and the EU there is an extensive body of legal precedent addressing the tension between (a) encouraging innovation by dominant firms which benefits consumers; and (b) discouraging efforts to maintain or enhance market power through product changes of dubious value aimed at disadvantaging smaller rivals and ultimately harming consumers. Litigation now pending under existing Chinese laws could provide a glimpse into how this issue will be dealt with under the Anti-Monopoly Law when it comes into force.