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The Whistle had Blown: How should Tetra Pak Respond to China's Imminent Antitrust Law?    
 
Product Ref: 05/247C Company: Tetra Pak

Product Type: Case Industry: Materials

Related Product(s): Teaching Note
Authors: Zhigang Tao   Emily Ho
Tetra Pak, the world's largest liquid food processor and packaging manufacturer, is among the multinational companies accused by the Chinese government of anti-competitive activities. Concurrently, the Chinese government has put forth a plan to roll out a new antitrust law in late 2005 in order to set up a fair market system in line with its goal to transform itself into a market economy. The new law attempts to rectify the vagueness of China's pre-existing competition policy. While it is still hard to predict the impact of the new law on companies operating in China, it is evident that companies (particularly foreign market leaders) should be on guard against possible lawsuits in the future as they are likely to be closely scrutinised by the government. This case looks at China's antitrust policy activities and the way companies should adapt to China¡¦s changing legal framework.
Functional Area : Economics & Business Policy
Strategy & General Management

Issues: Antitrust laws; globalization and antitrust; legal aspects of business; business-government relations; competition policy in development country; market power; competition strategy
Length: 11 pages Country: China (People's Rep. of)

Pub. Year: 2005 Level of Difficulty: 2
         
This product type is available in the following language(s):      English   Simplified Chinese
         
Related Information: Setting: China, 2004
 
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