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Whistle Had Blown: How Should Tetra Pak Respond to China’s Imminent Antitrust Law? Case Solution & Answer

Whistle Had Blown: How Should Tetra Pak Respond to China’s Imminent Antitrust Law? Case Solution

This Case is about COMPETITION, COMPETITIVE STRATEGY, ECONOMIC DEVELOPMENT, EMERGING MARKETS, GLOBALIZATION, REGULATION

PUBLICATION DATE: June 14, 2005 PRODUCT #: HKU407-HCB-ENG

Tetra Pak, packaging manufacturing company and the world’s biggest liquid food processor, is one of the multinational companies accused of engaging in anti competitive actions to remove competition in their own individual marketplaces by the Chinese authorities. The Chinese authorities proposed a strategy to roll out a fresh antitrust law in late 2005, to set up a reasonable market system in line with its aim to transform itself into a market economy. The new law tries to rectify the vagueness of China’s preexisting competition policy. Firms operating in China, particularly foreign marketplace leaders will be closely scrutinized by the authorities; these firms should safeguard against potential lawsuits. Considers the various facets of the antitrust policy of China and how firms should adapt to the changing legal framework of China.

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