Chinese Ecommerce Platforms’ Wide Retail Most-Favored-Nation Clauses

Ryan Zhu

In the e-commerce market, quite a few platform operators in China – such as JD, Gome, and PDD (PinDuoDuo) – require suppliers to accept a Wide Retail Most-Favored-Nation Clause (“RMFN Clause”).[1]This Clause requires suppliers to promise the platform that it will grant it equally favorable terms as granted to any other platform. VIP.COM,[2]the largest e-commerce platform in South China, also uses that Clause. This article shows the anti-competitive effects of RMFN clause gravely overwhelms the pro-competitive effects. In recent years, RMFNs have been scrutinized by the US Justice Department, the European Commission, as well as the national competition authorities of various EU member states.

China is the biggest E-commerce market in the world. However, … Read the rest

Shenzhen Takes Lead in Improving Antitrust Enforcement Transparency

Qu Gangyi

Qianhai Pilot Free Trade Zone (photo © http://qhsk.china-gdftz.gov.cn/

Qianhai Pilot Free Trade Zone (“Qianhai”), an innovative area in Shenzhen, aims to create an effective and more transparent antitrust enforcement mechanism.[1] Qianhai is seeking to serve as a role model for the country by improving the transparency of antitrust investigation. The Guidelines on Anti-monopoly Work (“Guideline”)[2] promulgated by the Qianhai Management Committee (“Committee”) is a big step towards achieving this goal.

This article, divided into five sections, provides an overview of how the Guideline improve antitrust transparency. Section One explains the problem of transparency of antitrust investigation in current laws and practices. The next three sections articulate three important institutional reforms in the Guideline: … Read the rest