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The Chinese government fines Johnson & Johnson for setting a price floor and firing a Chinese distributor, Rainbow Medical, for breaking it.

China fines Johnson & Johnson in landmark price-fixing case

Johnson & Johnson (NYSE:JNJ) won the dubious distinction of being the 1st Fortune 500 company to be fined for price fixing in China, according to a newspaper there.

The healthcare giant was fined 530,000 yuan (about $86,456) by the Shanghai High People's Court yesterday to compensate a former Chinese distributor, Rainbow Medical, China Daily reported.

The court found that J&J set a price floor for products sold by Rainbow in their contract, later penalizing the company and finally failing to renew the contract, according to the newspaper.

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