Wednesday, July 21, 2010

Depth: "Anti" monopoly prove safety



In the case of having no law, 3C areas of consumer enterprises are labeled "monopoly" label, since they are very strong in the industry. Is it really all powerful monopoly? It is regrettable that are labeled as "Top Hat", the company shall not be called fake, not really fine. Thus, introduction of China's "anti-monopoly law," the voice has grown.

Times change, August 1, 2008, closely watched "The People's Republic of China anti-monopoly law" will be officially implemented. The Law consists of eight chapters 57, based on the facts, the law as the criterion, false monopoly enterprise may be "relaxed", since no thorn in the side. The real monopoly enterprises, no longer, "smiling at the news," according to the monopoly of legal responsibility.

Interpretation of laws and regulations

Market share is not the monopoly of the only standard

"The company has been in the market share of nearly 60%, are not the obvious monopoly it?" Plausible to infer monopoly under the guise of the market share of foreign standards, the domestic sounds such as these are "extreme." Provisions of the law is really the case right? Yes, the presumption of whether the operator has a dominant market position, market share is indeed an important basis. However, it is also an important basis only, but also is presumed to be the basis for market dominance. The statutory market dominance, is in the relevant market operator has to control the prices, quantity or other trading conditions, or to hinder or affect the other operators to enter the market position of the relevant market power.

Only abuse of dominant market position, monopolistic behavior can be considered. Therefore, many consumers including journalists, if blindly, "regardless" of a company's market share and that it must thus "identified" it as a monopoly, apparently with the "anti-monopoly law" does not match.

There are also species of argument, even if the market share of the largest enterprise does not exceed 50%, but the top few companies in the same market if the market share of over 60%, that is "monopoly." This is a misunderstanding. Under the "anti-monopoly law" in Article 19 of the supplementary provisions, if the top few firms in the market, some operators are less than one tenth of the market share, not be presumed that the operator has a dominant market position. Thus, market share (including sales, profits, market share figures, etc.) is not a presumption of "monopoly" the sole criterion.

Anti-monopoly rather than the enterprise itself

"If the business proved to be monopoly, it should take, such as split, cut income and other means to limit the monopoly to continue to grow." The unwritten "ideas" seem to have been taken for granted. However, a closer view, "anti-monopoly law," the first, law is enacted "for the prevention and suppression of monopolistic behavior, protection of fair market competition, improve economic efficiency, protect consumer interests and public interests, promote the health of the socialist market economy development. "Therefore, it can be concluded that the anti-monopoly law in order rather than anti-monopoly itself. The full participation of the Act established the State Council, Zhang Qiong, deputy director of Legislative Affairs Office, also said "anti-monopoly law" does not oppose monopolies, against the monopoly of economic activities.

Under the law, monopolistic behavior, including: business monopolistic agreements, abuse of dominant market position and the operator has or may have a rule, restrict competition focused on the operators of the three areas. Zhang Qiong said that in dealing with the "anti-monopoly law" and monopoly industries, the relationship between the monopoly, the "anti-monopoly law" does not oppose the monopoly and the objective existence, against the monopoly status of the implementation of use of advantages of monopoly.

Zhang Qiong also specifically said that China, including power, telecommunications, railways and other monopoly industries, its own reform is well underway, and gradually introduce a competition mechanism, "Antimonopoly Law" to include them in the realm of management, there is no other requirement.

In the "anti-monopoly law" before the official implementation, many companies have been labeled 3C "monopoly" label. Now, in the "anti-monopoly law" will be implemented two days ago, much attention is how leading companies look to the law? Interview on enterprises.

Phone companies say

Nokia strong brand non-cheap war

China is Nokia's largest overseas market. Although its profit slipped in the second quarter, but sales still increased nearly 40% market share, probably followed by market share, competitors combined. Rely on rapid introduction of new products and covers the high end product sales chain, Nokia retaining its position as the first mobile phone market.

From market behavior, the Nokia phones actually cost is not high, because the same features materials phones, Nokia, the highest price. However, consumers are still buying, stores still have to set up Nokia counters. This is not a monopoly by Nokia, but the consumer choose. The source also said the mobile phone industry is already highly competitive, many companies, a broad channel. Nokia does not compel any consumers to buy their products, do not limit any store their own decisions. At the same time, Nokia did not use its strong market position to interfere with other competitors in the business.

Reporter observed: "Anti" for the company in great detail the provisions of monopolistic behavior, the monopoly of economic activities within the act, the application of the law; the same time, outside the monopoly, if they eliminate competition on the domestic market, limiting effects, the same applies to the law. Therefore, in the law after the implementation of Nokia the foreign enterprises, a series of overseas acquisitions behavior (visible with the concentration of business operators), or also Tong Yang to Jieshou Chinese "anti-monopoly law," the Shenhe.

However, whether specific to the Nokia monopoly ruled that the current can be basically that its not true monopoly. Although Nokia is a dominant market share, far more than any other handset manufacturers, while domestic phone and "weak and pitiful." However, not because the "finds" its monopoly. (Li Yan)



IT companies say

Dominant position in the Chinese market has not formed

According to market research firm iSuppli recently released report shows that Intel's microprocessors currently in the global market share nearly 80%, only 13% of its rival AMD, Intel, the data and the current market share in China, not much difference.

Microsoft is no exception. In particular, Microsoft's operating system, at least in the world occupy more than 90% market share. Therefore, the industry agreed that the market position only from the point of view, Microsoft and Intel have been included in China's "anti-monopoly law" aimed at the target. In fact, in the EU, Japan and South Korea and the United States, Microsoft and Intel have also been subject to "monopoly" of the allegations. Under the "anti-monopoly law," Chapter VI provides that: have a dominant market operator, not the abuse of market dominance, exclusion, restriction of competition. Therefore, tie off the focus, Microsoft and Intel is "abuse of dominant market position to eliminate or restrict competition."

Intel's marketing communications manager of China Zhang Yi Fan told reporters that the company's Ministry of Justice of the law-making process and requirements have always been concerned and understanding, have been related to internal staff training. She said the implementation of the law in China will not have Intel's influential, "We welcome this legislation, it is to encourage the protection of intellectual property and to support innovation."

Press Watch: Microsoft China, a person in charge of anonymity, said the company attaches great importance to "anti-monopoly law" was released. In the Chinese consumer market, as piracy rates can be ignored genuine reasons; in government and state enterprise market, the Government's emphasis on the protection of domestic software, government procurement of domestic software requirements necessary to hold a certain proportion, and under the same conditions give priority to buy domestic software Microsoft's market dominance is not formed. Chinese company chairman Zhang Yaqin, Microsoft claimed that: "In China, we and the Government, the IT industry has a lot of cooperation, we have no monopoly." (Liang held)

Flat-panel TV claims

Panel core technology provoke controversy monopoly

Before there were reports that some foreign companies to sell below cost, flat-panel TV to expand China market share. Is there any company violated the antitrust conditions?

Foreign: definitely not break the law

Face the issue of below cost sales, LG made it clear that would not "without justification in order to sell goods below cost." First of all, because the production of TV's LG Electronics and LG DISPLAY LCD panel production is operating on two entirely separate company, there can be no less than the cost to the loss of TV panel sales growth in exchange. LG said that they had believed in the values of honesty, will not violate monopoly laws.

LG also said they believe that the Chinese government will try even harder for all operators to create a more rational, more stable, more equitable environment.

Domestic enterprises: foreign low-cost profit-based panel

In domestic enterprises, the Hisense officials said, because many foreign investors to take low-cost flat-panel TV strategy, so that they substantially increase market share, although many of them are loss-product company, but the panel made up of technical advantages loss of end products. With different foreign and domestic corporate profits, mostly from product companies. He also said the anti-monopoly law will give Chinese companies to bring more fair market. But for domestic enterprises, more importantly, have their own technology, allows companies both in the upstream products or end markets have their own competition. The official also said the anti-monopoly law may lead to some policy changes in foreign-funded enterprises. Skyworth Group, told reporters that the relevant person in charge of foreign sales of flat-panel prices in China, or even lower than China's current brand, but their panel business was with huge profits.

Perspective: The China Electronic Chamber of Commerce Vice President Lu Renbo, said in an interview in today's flat panel TV market monopoly does not exist, because China is the current flat market any business can enter. In addition, Lu Renbo said, foreign-dominated because of its panel technology matures, although the relatively low foreign prices, but not the low price will constitute a monopoly. Foreign companies can price war, because they have advantages in the industry chain. Meanwhile, Lu Renbo that flat-panel TV market will not change because of the introduction of the law. The development of the law will regulate the market, but will not change the market structure, the ultimate impact of changes in the market or product and brand. (Experiencial)

Operator argument

In the mobile market share no more than half

Mobile communications market in Guangdong, the Guangdong Mobile overwhelming advantage, momentum grew rapidly. Reporters on the "anti-monopoly law" will be the topic of the implementation of the relevant high-level interviews with Guangdong Mobile. According to the executives that the communications industry as a whole, including fixed, mobile, broadband Internet access and all other communication services. According to department statistics, the Chinese mobile communications industry in market share of only about 40% and no more than half.

In addition, the development process from the perspective of China Mobile, thanks to good economic and social development, through legitimate competition, their own efforts and receive the current market position. The senior also said, "Antitrust Law" come into force, Guangdong Mobile will operate according to law, in the past rather ambiguous, and would conflict with the law, and now certainly correct according to the law.

Reporter observation: According to the "anti-monopoly law," the specific provisions, combined with China Mobile's market share and market conduct of operations, the basic can be judged, not really China Mobile in the communications industry monopoly. This is also in the telecom restructuring, China Mobile has not been "split" one of the reasons. Consumers are formed its "monopoly" view of the market, first because of its growing amount of users; second is the total amount of their huge profits. (Li Yan)

Press Notes

"Anti-monopoly law," implementation will bring to the situation?

According to report, led by the Internet Lab, unified all the various areas of dozens of experts formed the 椤圭洰 group completed the "Chinese Gao Keji area Long Duan investigation report" coming soon I hope that through joint action with local suppliers for the "anti-monopoly law "Enlightenment.

However, foreign trade director of the University of competition law, antitrust law drafting team members Professor Huang Yong believes that only 8 of Chapter 57 of the anti-trust law, are considered very principle, many aspects need refinement, and even each concept. "In developing the original draft plan developed in August 1st more than 40 supporting regulations, so far, none issued. Anti-monopoly law will soon be implemented, how?"

In his view, almost all suspected illegal restriction of competition can not easily pigeon-holing, in each case because of its product, industry, services, different, has its own particularity, not only the need for a large number of regulations, departmental rules and anti-monopoly guide, law enforcement agencies must also collect data and understand the market process, which requires a very professional person to complete.

According to sources the Ministry of Commerce, the Ministry of Commerce will be in the "anti-monopoly law" before the implementation, the formation of a charge of anti-monopoly investigation bureau level of the sector, harmonization of domestic and foreign mergers and acquisitions in the exercise of the operators of law enforcement focus on the review, issued in the country Reform Commission and State Administration for Industry will set up new divisions, each responsible for "anti-monopoly law" provisions of "price monopoly" review and "abuse of dominant market position" review. Recently, SAIC has set up anti-monopoly and anti-unfair competition law enforcement bureau. However, under the "anti-monopoly law" provides for the establishment of the State Council Anti-Monopoly Committee of the offices will be located in the Ministry of Commerce. This shows that in the future antitrust enforcement will bear the main responsibilities of the Ministry of Commerce.

Another "anti-monopoly law," members of the Group, professor at China University of Political Science Jianzhong also believes that the Anti-Monopoly Committee should play a greater role in coordinating law enforcement, is to set up the functions of specific law enforcement agencies. He said that "anti-monopoly law," published before, in fact, several government agencies already regulate monopolistic behavior, such as the Development and Reform Commission, Trade and Industry Bureau, Ministry of Commerce. However, if the three should form a body, I am afraid unrealistic, will concentrate power in a particular one also wrong. After the conditions are ripe, the law enforcement agencies could concentrate.

But experts still said that China although the implementation of "anti-monopoly law," some can not, but in time, I believe that China's "anti-monopoly law" will become increasingly improvement of the order of China's economic development escort.







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