Lawyer Commentary Mondaq United States Chinese Vitamin Defendants Prevail Again, Showing Limits Of U.S. Antitrust Law's Extraterritorial Reach

Chinese Vitamin Defendants Prevail Again, Showing Limits Of U.S. Antitrust Law's Extraterritorial Reach

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Last week, the United States Court of Appeals for the Second Circuit reversed'for the second time'the decision of the United States District Court for the Southern District of New York that awarded treble damages to the plaintiffs in a class action suit alleging that four Chinese exporters of Vitamin C violated U.S. antitrust laws. Animal Sci. Prods., Inc. v. Hebei Welcome Pharm. Co. Ltd., No. 13-4791-cv, Dkt. No. 324-1 (2d Cir. Aug. 10, 2021). The decision shows us that, while U.S. antitrust law has a long reach, there are limits. In this case, the limitation was international comity'an exception that is applicable only in the rarest of cases.

Background

In 2013, a jury found a number of China-based companies liable for coordinating the supply and prices of Vitamin C exported to the United States. The district court entered a trebled damages award of nearly $150 million. On appeal, the Second Circuit reversed, dismissing the case and holding that the district court was bound to defer to the explanation of Chinese law that was submitted in the...

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