Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Sunday, September 16, 2012

Economics and Private Antitrust Litigation in China

Posted by D. Daniel Sokol

Dennis Lu, Government of Canada - Competition Policy Branch and Guofu Tan, University of Southern California - Department of Economics have an interesting paper on the Economics and Private Antitrust Litigation in China. I spent time with Guofu doing judicial training in China for members of the Chinese judiciary last spring. Guofu is an excellent presenter of economic analysis of antitrust to Chinese audiences. Because he has advised on a number of cases (and is a Chinese native and also has a secondary appointment at the Shanghai School of Finance) he is one of the few people who can successfully bridge the gap between US and Chinese analytical approaches.

ABSTRACT: Since the introduction of China’s Anti-Monopoly Law in 2008, private litigation has been increasing in the areas of monopolistic agreements and abuses of dominance. In addition, China's Supreme People's Court recently issued its judicial interpretation concerning the application of the law in order to offer some guidance in resolving private disputes. The purpose of this paper is to explain how competition economics can help to provide evidence in these private litigations. We discuss how the Anti-Monopoly Law and the judicial interpretation seem to take a rule of reason approach, as well as what roles economic analyses and economists may play in related litigation. We describe the economic evidence being used and accepted in recent Chinese cases that have reached the Chinese courts of appeals and further provide our views on what other evidence could have been offered in these cases.

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