Monopoly always influence country’s development in the future, and for the more profits and business return then harming consumers’ advantages. So antitrust law was born to restrain and limit these companies, consortium involving monopoly during their industry. Antitrust law has been close to more completion in developed countries, however it is only the beginning in developing countries. According to statistic data, only less than 12 of developing countries have issued antitrust-law act. At the present, aiming to antitrust law China has rolled out related statutes and completed it gradually since Augest, 30th, 2007. Antitrust law also is called competition law and its original meaning is solo occupation, namely only one business executive in the market. Antitrust law is the legal regime that against monopoly and protect rational competition, also it is fundamental legal regime of market economic countries.
China Antitrust Law
China antitrust law, narrow sense understanding only means Chinese Anti monopoly Law which is passed by the 29th session of the NPC ( Nation People Congress) 10th Standing Committee on Aug, 30th , 2007; beginning to enforce since Aug, 1st , 2008. But broadly understanding about Chinese antitrust law is whole legal system of antitrust law, including Chinese Anti monopoly Law and latter relevant matching law documents issued and enforced aiming to enforce Chinese Antimonopoly Law. Now we may see a steep uptick about China’s antitrust law enforcement in recent years, and China has established itself one of the global major antitrust regimes after the EU and America. Certainly, in meantime industrial policy concerns always keep to play a critical role in China.
According to Chinese Anti Monopoly Law, its main guidance is to restrain such as,
- abuse of dominance of market as its performance mainly is dominant operator practicing improper price action.
- Curb of competitive agreement, also is called horizontal restriction of competition.
- Enterprises merger control, the action of trying to gain market’s dominance.
- Administrative monopoly, the action of restriction of competition by abuse of administrative power by administration or its authorized department.
The most of industries may develop and progress rationally and healthily under Chinese Anti monopoly Law such as Steel Companies in heavy industry, technology firms and giants, service industry and many groups in light industry. Certainly, it is also working to protect domestic enterprises and restrain related foreign firms because of their wrong actions.
- Basic principle
Actually Chinese Anti monopoly Law has been worked out and issued in terns of some of basic principles established by China government. Only promising enforcement of Chinese Antitrust Law must base on valuable principles.
- The principle of sound and uniform, Open, competitive, orderly market system.
If the market system is not complete or saying without orderly and open, then the most of companies will utilize these leaks and weakness to operate illegally so that realize itself max profits or business return. It is not favorable for other rational competitive enterprises.
- Encouraging fair competition, centralizing law enforcement, improving competition in market.
The good initiatives will progress law enforcement and industrial orderly development. Every competition must base on fair principle, so encouraging fair competition is really critical factor for this principle. Based on fair competition, reinforcing market competition is another good condition to restrain one company in one industry, thus avoiding monopoly is happened efficiently.
- The principle of forbidding action of limit competition by illegal enforcement.
According to consumers’ right and interest and against to illicit competition, action of illicit competition and action of harming consumer’s right and interest do not meet to duality of limiting competition. So for consumers’ rights and interests, China already have figured out and rolled out related Antitrust Law based on this principle and ensure and reinforce fair competition more rationally and steadily.
- The principle based on forbidding abuse of administrative power to limit competition.
According to 8th regulation in Chinese Anti monopoly Law, administrative office and the organizations authorized by laws and regulations to manage public affairs functions, shall not abuse administrative power to exclude or restrict competition.
Nowadays the business is not only for domestic companies and related industrial giants, but actually the business is ubiquitously around the world as international trade and multinational cooperation. So Antitrust Law is not only for effect in one country, however it should be developed, unite and work for globe.