Johnson & Johnson loses monopoly suit

Johnson & Johnson lost a monopoly lawsuit brought by a distributor in a final judgment announced by Shanghai Higher People's Court Thursday, marking the first time the plaintiff has won an anti-monopoly lawsuit in China.

The judgment requires J&J to pay 530,000 yuan ($86,472) in compensation, news portal chinacourt.com reported.

The report said Johnson & Johnson (China) Medical Equipment Co made a distribution agreement with Rainbow Medical Equipment & Supply Co in 2008, in which Rainbow was restricted from selling J&J products outside of a designated area and from selling lower than a minimum price set by J&J.

In March 2008, Rainbow won a bidding for a project at a price that was lower than the set price. In April 2008, J&J warned Rainbow against its low price bidding and later J&J terminated Rainbow's distribution rights. It stopped taking orders from Rainbow in August the same year and ceased supplying products.