The State Administration for Market Regulation (SAMR) in China fined three distributors of calcium gluconate RMB325.5 million for violation of the Anti-Monopoly Law for abuse of their dominant market position.

The three distributors, including Shandong Kanghui Pharmaceutical, Weifang Puyunhui Pharmaceutical and Weifang Taiyangshen Pharmaceutical, are related to each other and have a dominant position (over 80% market share) in the supply chain of calcium gluconate. The SAMR received complaints from the industry alleging that the three companies had been working together in monopolizing the supply of calcium gluconate for injection medicine. After 6-month investigation, the SAMR found that the companies had set the price of their products at an unreasonably high level and added unfair conditions to downstream manufacturers, and therefore violated the Anti-Monopoly Law.

China has 3 authorities enforcing the Anti-Monopoly Law: the SAMR deals with abuse of dominant market position, the National Development and Reform Commission (NDRC) deals with price control, and the Ministry of Commerce (MOFCOM) responsible for review & approval on merge & acquisition.

Contributed by: Jason Yao