A PYMNTS Company

China: Japan firm exits baby formula market following fines

 |  October 27, 2013

Japan-based Meiji announced plans to exit the Chinese market following a major crackdown on infant formula prices that sparked debate as to whether Chinese regulators were targeting foreign companies in the case.

Meiji Holdings will be the first firm to pull out of the sector following the fines issued; the company cited intensifying competition and increasing costs to source milk from Australia, say reports. All Chinese baby formula companies use Australian milk.

Earlier this year, China’s National Development and Reform Commission issued fines totaling $110 million against foreign makers of baby formula for price-fixing.

Full content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.