Legal Regulations Of Anti-monopoly Law On Minimum Resale Price Maintenance

Only when at least one of the parties of a minimum resale pricemaintenance agreement have the ability to control the market, which islikely to limit competitions, is the agreement becoming a verticalmonopoly one. The two general approaches for analyzing agreements infi""xing minimum resale price, i.e. the "illegal per se rule and the rule of”reason both have their own advantages and disadvantages. However,they cannot be used at the same time. Illegal per se rule has been used inthe case Moutai, while the rule of reason has been used in the caseRainbow v. Johnson&Johnson. We think the illegal per se rule matchesbetter with the current economic circumstance and legal environment ofChina compared with the rule of reason. Besides, we propose that thesecond paragraph of article ifrst and the article iffteenth of PRCAnti-Monopoly Law could have a more specific interpretation.