Last year, the Shanghai High People's Court rendered final judgment on an antitrust dispute between two Johnson & Johnson subsidiaries in China and their former distributor in Beijing. The judgment, which overturned a lower court ruling, held that the two subsidiaries were liable for damages resulting from attempts to enforce a vertical monopoly agreement against the distributor. As the first antitrust judgment relating to vertical monopoly agreements in China, the case signals the stance of the Chinese courts towards vertical trade restraints and provides guidance for future cases.
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