Examining Resale Price Maintenance (RPM) through the Johnson & Johnson case

Resale Price Maintenance (RPM) refers to contractual provisions in supply-and-distribution agreements whereby suppliers impose special requirements on distributors regarding the resale prices of goods. Depending on the type of restriction, RPM is generally categorized into three forms: (i) Fixed Resale Price—requiring distributors to sell designated products at a specific price (e.g., an upstream manufacturer mandates that downstream dealers uniformly retail a particular smartphone model at exactly RMB 4,999, neither higher nor lower); (ii) Minimum Resale Price Maintenance—setting a floor price below which distributors may not sell (e.g., an upstream manufacturer requires that the same smartphone model be sold for no less than RMB 4,999); and (iii) Maximum Resale Price Maintenance—setting a ceiling price above which distributors may not sell (e.g., an upstream manufacturer caps the retail price of the smartphone model at RMB 4,999). The commonly seen 'uniform retail price' in markets constitutes one manifestation of RPM. Though it may sound intimidating, its essence lies simply in 'upstream entities dictating the external sale price to downstream entities—upstream calls the shots.' According to Article 18 of China’s Anti-Monopoly Law, only fixed resale pricing and minimum resale price maintenance are prohibited under Chinese law; maximum resale price maintenance is not banned, as academic consensus holds that such upper-price limits generally benefit consumers. II. Why RPM Is Prohibited The 2008 Anti-Monopoly Law (Article 14) adopted a principle of 'prohibition in principle, with no exceptions.' The 2022 revised Anti-Monopoly Law (Article 18), however, shifted to 'prohibition in principle, subject to exemption exceptions': RPM agreements between operators and their trading counterparts are prohibited in principle, but exemptions apply if the operator can demonstrate either (a) that the agreement does not produce anti-competitive effects, or (b) that its market share in the relevant market falls below the threshold set by the State Anti-Monopoly Enforcement Authority and satisfies other conditions stipulated by that authority. RPM is prohibited because traditional economic theory holds that RPM easily facilitates horizontal collusion among competitors. When multiple competing firms adopt identical or similar fixed- or minimum-price practices for the same or comparable products, overall market competition becomes compressed and distorted, fostering tacit or explicit price cartels—and ultimately harming consumer welfare. Moreover, RPM may also constitute abuse of a dominant market position, erecting entry barriers that prevent new competitors from entering the market, thereby excluding or restricting competition. In practice, enforcement statistics show that while the number of RPM-related penalty cases remains lower than that of horizontal monopoly cases, the severity of penalties has been steadily increasing. To date, several prominent RPM cases include: the 'Robust v. Johnson & Johnson case,' the 'Moutai and Wuliangye case,' the 'Heshengyuan and other infant formula manufacturers case,' the 'Medtronic case,' and the 'Bull Group case.' Notably, in the 'Robust v. Johnson & Johnson case,' the People’s Court established four criteria for assessing whether RPM violates the law: (1) the degree of competition in the relevant market; (2) the market power of the implementing enterprise; (3) whether the enterprise possesses motives to restrict competition; and (4) the actual competitive effects of the RPM practice.

Construction machinery giant Caterpillar acquires Australian mining software company RPMGlobal | Daily M&A News

Produced by IT Orange M&A 13 October Monday Daily Events LATEST NEWS Domestic M&A Events 1. SG Micro acquired approximately 77% equity stake in Yicunxin Semiconductor Yicunxin Semiconductor is a chip design service provider specializing in the research, development, and sales of high-performance, high-reliability non-volatile memory and high-quality analog and mixed-signal products. Recently, Yicunxin underwent a business registration change: former shareholders Changzhi Jinbolue Automobile Trade & Parts City Co., Ltd. and Hao Qingshan exited, while SG Micro was added as a new shareholder holding 77.54%. Overseas M&A Events 1. Caterpillar Inc. to acquire RPMGlobal RPMGlobal is an Australian mining software developer offering mining software solution development, consulting services, and fully integrated, customized solutions for global mining companies and investors. Recently, Caterpillar Inc. announced its intention to acquire RPMGlobal.

RPM International Director Whited Granted 1,700 Shares

Oct 14, 2026

RPM International Inc. director Elizabeth F. Whited received a 1,700-share stock grant on October 8, increasing her direct holdings to 8,800 shares per SEC Form 4.

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RPM International Director Receives 1,700 Shares, Total Holdings Reach 13,191

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Director Robert Livingston Awarded 1,700 RPM International Shares on October 8, 2026