Beijing's global warning against monopolistic behaviour
Beijing's fine on display makers is a signal to both domestic and multinational firms that anti-competitive practise will not be tolerated
The 353 million yuan (HK$439 million) penalty the National Development and Reform Commission (NDRC) slapped on a price cartel of six Taiwanese and South Korean makers of liquid crystal displays sets a precedent.
It signals Beijing's resolve to act against monopolistic behaviour not just by domestic firms but multinationals as well.
Lawyers said this case and rulings and investigations in the past two years suggest Beijing is serious about enforcing laws against price collusion and other actions that reduce competition.
"This is the first time China has sanctioned against a global cartel with local effect; before this, actions have been taken only against local cartels," said Francois Renard, head of the China antitrust practice at Allen & Overy in Beijing. "It sends a clear message that it is ready to tackle international cartels."
A previous case against a multinational related to product pricing involved Unilever, the Netherlands-based consumer goods manufacturer.
The firm was fined two million yuan under the Price Law for spreading comments in the media about expected price rises by itself and its rivals, resulting in market-disruptive panic buying.