Monday, July 12, 2010

Comments: Analysis of "anti-monopoly law" applies to objects



After years of deliberation, "Antimonopoly Law" will be officially in the August 1 implementation, the implementation of this law has an important significance, economic and even social injustice in China is an important factor - monopoly, finally legally binding. On "anti-monopoly law," Interpretation is an important anti-monopoly, anti-monopoly law not only anti-monopoly act, which in turn is said to be "international experience." We must clearly recognize that monopolies inevitably lead to monopolistic behavior, and now the monopoly is the accumulation of past monopolistic behavior, "anti-monopoly law" could not have anti-monopoly.

Why monopolies inevitably lead to monopoly behavior? Monopoly enterprises are named because of its scarce resources on a monopoly of possession, and the corporate profit is another target, the minimum cost of resources for profit is the highest income approach, in the absence of government control of the situation it is inevitable results. Law have the ability to not only touch the monopoly against monopoly enterprise? China's oil products business is a good example, in the monopoly profits to be under control (oil limit), a monopoly will monopolize the allocation of resources in the absence of government control, the most profitable areas. Faced with this situation the Government either fully control all aspects of the industry chain (the control cost is too high), or laissez-faire monopoly boundary expansion (similar to the influx of domestic gas station acquisitions). The present situation, the city gas market is very likely re-take the old road of the private stations.

"Only anti-monopoly act" is a meaningless question. The so-called monopoly was defined as predatory pricing, refusals to deal, tying, etc., it seems that as long as the monopolies do not touch them no grounds for objection. This view saw the trees, predatory pricing was not a monopoly, the purpose of monopoly access to the market through such behavior, while other enterprises are forced to lose their fear of the market. If predatory pricing is a monopoly we need to limit, then the purpose behind such acts as - excessive market share, how can escape control of the? If we want control over the market share, then how can a monopoly out of the anti-monopoly beyond what?

Throughout the country on the monopoly case is not the most important evidence of how the company will monopolize the market against low-cost rivals, refusals to deal, etc. The most important thing is the company's market share to abnormally high thus affecting to the market's health. Considered here share is a state enterprise rather than corporate behavior, so anti-monopoly is not anti-monopoly international experience to say quite doubtful. Indeed, the international trend with a diluted anti-monopoly law, the United States in the 20th century, after the 70's monopolistic behavior for large companies less and less adverse decision, this trend is due to the formation of international monopoly companies which leads to high in a country share does not affect its operating efficiency, because the international competition will encourage them to increase their production efficiency, and too much of the anti-monopoly will affect the international competitiveness of domestic enterprises. This is of some of China's monopoly does not apply, because the oil, telecommunications and other monopoly industries is not globalization.

We believe that our newly issued "anti-monopoly law" is a fair and non-discriminatory laws, do not favor state-owned monopoly, but because of historical reasons for the complex cognitive and state-owned enterprises, the history of the formation of some of the sector monopolies changes could not be done overnight, but the introduction of the law but not kept waiting and waiting, so in the law for the historical issues of "amnesty" is a realistic approach.







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