BBC News, 2
August 2013
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China has accused foreign companies of monopoly practices |
The
healthcare giant Johnson & Johnson has become the latest foreign company to
be accused of misconduct in China.
A ruling by
a Shanghai court ordered the US company to pay $85,000 (£56,000) to a local
distributor for violating anti-monopoly laws.
Two
subsidiaries of the company were accused of setting a minimum price for the
sale of surgical instruments.
Multinationals
have faced increased scrutiny from the Chinese authorities.
Last month,
two foreign milk suppliers announced price cuts after the government launched
an investigation into possible price-fixing.
Sensitive
Four
Chinese executives from the pharmaceutical giant GlaxoSmithKline have also been
detained after being accused of paying bribes.
The Chinese
authorities are sensitive to consumer prices as the cost of living continues to
surge.
Some
business analysts say that foreign companies are being targeted to shore up the
market share for their Chinese competitors.
The
Shanghai court overturned a judgment by a lower court that cleared the Johnson
& Johnson subsidiaries.
The judge
said the ruling was intended to protect consumers and the public interest.
He said the
$85,000 damages were intended to compensate the distributor, Rainbow Medical,
for lost sales.
It was
denied access to further products by the suppliers after being told it was
selling medical equipment too cheaply.
Rainbow
Medical brought the case to court with a demand for $2.2m compensation.
It expressed
disappointment at the size of the award.
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