Abuse and Regulation -- Antitrust Law's Regulation of Enterprises' Abuse of Market Dominant Positions

Author: Literature Guo
Publisher:
Publish Date: 2003-08-01
Features: Since the establishment and development of a socialist market economy in China, discussions about building markets have been frequent. In fact, fundamentally, building a market requires establishing a free and fair market competition order. To establish and maintain such an order, it is necessary to prohibit unfair competition practices and restrict competition practices. The former has been addressed with the Anti-Unfair Competition Law in China; the latter requires the formulation of an Anti-Monopoly Law (or Anti-Competition Restriction Law). Many issues need further research. The book "Abuse and Regulation—The Anti-Monopoly Law's Regulation of Corporate Abuse of Market Dominance," written by Literature Guo, is a specialized work that studies and explores how the anti-monopoly law regulates the abuse of market dominance. Due to its theoretical value and practical significance, I am willing to offer a few words in this preface. This work begins with competition theory, systematically examines and studies the value objectives of the anti-monopoly law, the constitutive elements and typical manifestations of the abuse of market dominance, as well as regulatory measures. It provides a systematic theoretical framework and fresh perspectives. Following the behavioral regulationist approach, the anti-monopoly law does not broadly oppose companies from occupying market dominance positions but only opposes the abuse of such dominance. Undoubtedly, certain standards must be followed when determining whether something constitutes "abuse." In this regard, Literature Guo's work delves into the inherent violation principle and the reasonableness principle that have emerged from the anti-monopoly law practices in various countries. He argues that while the inherent violation principle saves judicial costs, it may harm social efficiency; the reasonableness principle reflects the fair value pursued by the law, but the analysis of corporate costs is overly complex. Therefore, he proposes integrating the two. This analysis is meaningful for China, which lacks a tradition of anti-competitive law but needs to introduce anti-competition restriction laws to develop its market economy.