Shanghai's First Use Of China's Anti-Monopoly Law

Law360 (November 17, 2009, 1:03 PM EST) -- On Oct. 23, 2009, the Shanghai No. 1 Intermediate People's Court rejected an abuse-of-dominance case filed by Sursen Electronic Technology Co. Ltd., the operator of a Web site offering digital books, against Shanda Interactive Entertainment Ltd. and Shanghai Xuanting Entertainment Co. Ltd.

This decision appears to be the first applying Article 17(4) of the Chinese Anti-Monopoly Law (the "AML"), which prohibits an undertaking with a dominant market position from "limiting a counterparty to trading only with it or with an undertaking designated by it without any justification."

The case involved a book Sursen published online in 2008. Shanda had previously hired...

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