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Abuse of Market Dominance Under China’s Anti-Monopoly Law: The Case of Tetra Pak

Author

Listed:
  • Xiao Fu

    (Fudan University)

  • Guofu Tan

    (University of Southern California)

Abstract

In this paper, we analyze a recent antitrust case of abuse of dominance that was decided by a Chinese administrative enforcement agency under China’s Anti-Monopoly Law (“AML”). A key issue in this case involved the impact of loyalty rebate programs used by a dominant firm. We provide an overview of the case, highlight the main points of the decision, and focus on the assessment of loyalty rebates. As the first antitrust ruling in China involving loyalty discounts, we expect that the decision will serve as an important reference in antitrust enforcement in China.

Suggested Citation

  • Xiao Fu & Guofu Tan, 2019. "Abuse of Market Dominance Under China’s Anti-Monopoly Law: The Case of Tetra Pak," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 54(2), pages 409-434, March.
    • Handle: RePEc:kap:revind:v:54:y:2019:i:2:d:10.1007_s11151-018-9638-8
    DOI: 10.1007/s11151-018-9638-8
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    References listed on IDEAS

    as
    1. Zhiyong Liu & Yue Qiao, 2012. "Abuse of Market Dominance Under China’s 2007 Anti-monopoly Law: A Preliminary Assessment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(1), pages 77-107, August.
    2. Guofu Tan & Dennis Lu, 2013. "Economics And Private Antitrust Litigation In China," CPI Journal, Competition Policy International, vol. 9.
    3. Yong Chao & Guofu Tan & Adam Chi Leung Wong, 2018. "All†units discounts as a partial foreclosure device," RAND Journal of Economics, RAND Corporation, vol. 49(1), pages 155-180, March.
    4. Greenlee, Patrick & Reitman, David & Sibley, David S., 2008. "An antitrust analysis of bundled loyalty discounts," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1132-1152, September.
    5. Spector, David, 2005. "Loyalty Rebates : An Assessment of Competition Concerns and a Proposed Rule of Reason," CEPREMAP Working Papers (Docweb) 0514, CEPREMAP.
    6. Jeffrey Church & Roger Ware, 1998. "Abuse of Dominance under the 1986 Canadian Competition Act," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 13(1), pages 85-129, April.
    7. David Spector, 2005. "Loyalty Rebates: An Assessment of Competition Concerns and a Proposed Structured Rule of Reason," CPI Journal, Competition Policy International, vol. 1.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Chao, Yong & Tan, Guofu & Wong, Adam Chi Leung, 2019. "Asymmetry in capacity and the adoption of all-units discounts," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 152-172.

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    More about this item

    Keywords

    Abuse of market dominance; AML; Antitrust enforcement; Loyalty discounts;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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