5 June, 2012
On May 3, 2012, the Supreme People’s Court issued the Provisions on Several Issues Concerning Application of Laws in the Trial of Civil Dispute Cases Arising from Monopolistic Activities, which will take effect on June 1, 2012. The provisions are China’s first ever judicial interpretations on anti-monopoly related trials. According to the provisions, individuals, legal persons or other organizations may file lawsuits directly with the relevant intermediate people’s courts if they suffer losses due to monopolistic acts or are involved in disputes over violation of the PRC Anti-Monopoly Law by contracts or article of associations of industry associations. The defendant shall bear the burden of proof in cases alleging entry into monopolistic agreements while the plaintiff shall bear the burden of proof in cases involving abusing of market dominant position. The parties may also apply to entrust professional institutions or experts to provide market research or economic analysis report on specific issues. If a contract or the articles of association of an industry association are recognized as containing content violating mandatory provisions of PRC Anti-Monopoly Law or other laws or regulations, it shall be ruled as invalid. If a defendant is recognized as conducting monopolistic acts and has caused losses to the plaintiff, the court may order it to stop the infringement and compensate damages.
The full Chinese text of the provisions is available here.
For further information, please contact:
Elizabeth Cole, Partner, Orrick
Thomas Man, Partner, Orrick
Brad Herrold, Orrick
Veronica Lockyer, Orrick
Yan Zeng, Orrick