WASHINGTON—The Information Technology and Innovation Foundation (ITIF), the world’s leading science and tech policy think tank, today welcomed the U.S. Supreme Court decision in Animal Science Products, Inc. v. Hebei Welcome Pharmaceutical Co., which ruled that Chinese manufacturers violated U.S. antitrust law. The manufacturers had contended that their anti-competitive behavior had been directed by the Chinese government and their actions should be given deference based upon a foreign doctrine compulsion defense. ITIF released the followed statement from Vice President Stephen Ezell:
China has systematically abused the doctrine of foreign sovereign compulsion to prop up its companies in international markets. Foreign governments cannot be allowed to give their companies carte blanche exemption from U.S. law. The Supreme Court’s ruling is long overdue and will serve to protect U.S. interests from anti-competitive behavior and dent China’s ability to pursue innovation mercantilist practices.
The case originated in 2005, when U.S. purchasers of vitamin C alleged that Chinese manufacturers had conspired to fix prices and limit supplies of vitamin C sold on international markets, resulting in tens of millions of dollars in damages to U.S. consumers.