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China: Baby formula case reaches alleged record $110 million settlement

By  |  August 7, 2013
China: Baby formula case reaches alleged record $110 million settlement

Foreign companies accused by Chinese regulators of fixing nutrition formula prices have settled for $110 million, closing a four month-long investigation by the National Development and Reform Commission. The fined companies include Mead Johnson Nutrition Co, Danone, New Zealand-based Fonterra, Netherlands-based cooperative FrieslandCampina, Hong Kong-based Biostime International, and Abbott Laboratories. Xinhua news agency reported that the fines beat a new record for China without elaborating on specifics. Antitrust expert Peter Wang told reporters that China “has typically not issued large fines for antitrust violations.” Foreign companies have recent lowered their prices in China for infant milk formula following allegations of price-fixing and other anticompetitive allegations.

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