Abstract
Administrative monopolies are one of the major obstacles for China to establish an integrated and competitive domestic market. During the legislative process of the Anti-Monopoly Law in China, the question of whether prohibiting administrative monopolies should be taken as one of the main objectives has been intensively discussed. Although the final version of the Anti-Monopoly Law included a chapter on prohibiting administrative monopolies, the enforcement of these provisions was rather ineffective.
This chapter draws attention to EU competition law. Starting from the Treaty of Paris, the goal of establishing an integrated common market by breaking down trade barriers between Member States has been explicitly stated in EU treaties. To achieve this goal, a complete competition law system has been developed to prohibit anti-competitive restrictions imposed both by public power at the Member States’ level and by private enterprises.
The EU experience has implications for China, in that if market integration is considered as the main goal of competition law, the linkage between this goal and corresponding legal provisions must be strengthened. In particular, different conduct of administrative monopolies should be distinguished and more clearly defined. In the EU, state actions restricting the free movement of economic resources are prohibited under the general provisions on four freedoms, and the trade barriers established by undertakings are prohibited under competition provisions. China could learn from the EU: by aligning the anti-competitive conduct with competition provisions, and by providing both public and private enforcement instruments to secure an effective enforcement of these provisions, a complete competition law framework could be established. In this way, competition law and policy in China could be better implemented in order to foster economic integration between regions and contribute to the development of a market economy.
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Notes
- 1.
- 2.
- 3.
Wang (2004), p. 286.
- 4.
Owen et al. (2008), pp. 256–257.
- 5.
Owen et al. (2008), pp. 254–255.
- 6.
See Article 1 of the AML: “This Law is enacted for the purpose of preventing and restraining monopolistic conducts, protecting fair competition in the market, enhancing economic efficiency, safeguarding the interests of consumers and social public interest, promoting the healthy development of the socialist market economy”. This translation is adopted from http://en.people.cn/90001/90776/90785/6466798.html. Accessed 6 March 2015.
- 7.
Hawk (1972), p. 231.
- 8.
Van Miert (1993), p. 135.
- 9.
Shang (2009), p. 4.
- 10.
Lin et al. (1998), p. 423.
- 11.
- 12.
Lin et al. (1998), p. 423.
- 13.
Lin et al. (1998), p. 423.
- 14.
Yang (2002), p. 175.
- 15.
Guo and Hu (2004), p. 272.
- 16.
Guo and Hu (2004), p. 272.
- 17.
Yang (2002), p. 172.
- 18.
Yang (2002), p. 172.
- 19.
Chan (2009), p. 264.
- 20.
Guo and Hu (2004), p. 273.
- 21.
Qian and Weingast (1996), p. 162.
- 22.
- 23.
- 24.
- 25.
Poncet (2003).
- 26.
Yu and Yu (2011).
- 27.
Yu and Yu (2011), p. 94.
- 28.
Yu and Yu (2011), p. 94.
- 29.
- 30.
- 31.
Yu and Zhang (2013), p. 216.
- 32.
- 33.
GuanyuKaizhan He BaohuShehuizhuyiJingzheng De ZanxingGuiding (关于开展和保护社会主义竞争的暂行规定) [Provisional Rules on the Development and Protection of Socialist Competition] (promulgated by the State Council on 17 October 1980, effective on 17 October 1980, and repealed on 6 October 2001). Available at http://finance.sina.com.cn/g/20050418/12411526820.shtml (in Chinese). Accessed 6 March 2015.
- 34.
ZhonghuaRenminGongheguoJiageGuanliTiaoli (中华人民共和国价格管理条例) [Regulations of the People’s Republic of China on Price Control] (promulgated by the State Council on 11 September 1987, effective on 11 September 1987), available at http://en.pkulaw.cn/display.aspx?cgid=3479&lib=law. (in English and Chinese). Accessed 6 March 2015.
- 35.
Mehra and Meng (2009), pp. 388 and 401.
- 36.
GuowuyuanGuanyuJinzhiZaiShichangJingjiHuodongZhongShixingDiquFengsuo De Guiding (国务院关于禁止在市场经济活动中实行地区封锁的规定) [Provisions of the State Council on Prohibiting Regional Blockade in Market Economic Activities] (promulgated by the State Council on 21 April 2001, effective on 21 April 2001), available at http://en.pkulaw.cn/display.aspx?cgid=35595&lib=law (in English and Chinese). Accessed 6 March 2015.
- 37.
GuowuyuanGuanyuZhengdun He GuifanShichangZhixu De Jueding (国务院关于整顿和规范市场秩序的决定) [Decisions of the State Council on Rectifying and Standardizing the Order in the Market Economy] (promulgated by the State Council on 27 April 2001, effective on 27 April 2001) available at http://en.pkulaw.cn/display.aspx?cgid=35594&lib=law. Accessed 6 March 2015.
- 38.
Jung and Hao (2003), p. 128.
- 39.
Jung and Hao (2003), p. 128.
- 40.
Mehra and Meng (2009), p. 403.
- 41.
GuanyuJinzhiGongyongQiyeXianzhiJingzhengXingwei De Ruogan Guiding (关于禁止公用企业限制竞争行为的若干规定) [Certain Regulations on Prohibiting Anti-competitive Practices of Public Enterprises] (promulgated by the State Administration for Industry and Commerce, 24 December 1993, effective on 24 December 1993), available at http://en.pkulaw.cn/display.aspx?cgid=8847&lib=law (in English and Chinese). Accessed 6 March 2015.
- 42.
Jung and Hao (2003), p. 130.
- 43.
GuowuyuanBangongtingGuanyuYinfaGuojiaGongshangXingzhengGuanliZongjuZhuyaoZhizeNeisheJigou He RenyuanBianzhi Guiding De Tongzhi (国务院办公厅关于印发国家工商行政管理总局主要职责,内设机构和人员编制规定的通知) [Notice of the General Office of the State Council on Major Duties, Internal Organization and Administration of the SAIC] 11 July 2008.
- 44.
ZhonghuaRenminGongheguoFanbuzhengdangjingzhengFa (中华人民共和国反不正当竞争法) [Anti-Unfair Competition Law of the People’s Republic of China] (promulgated by the Standing Committee of the National People’s Congress on 2 September 1993, effective 2 September 1993), available at http://tfs.mofcom.gov.cn/aarticle/date/i/s/200503/20050300027909.html (in Chinese). Accessed 15 March 2015; English translation is available at http://en.pkulaw.cn/display.aspx?cgid=6359&lib=law. Accessed 15 March 2015.
- 45.
Article 7 of the Countering Unfair Competition Law of the People’s Republic of China: “The government and its organ shall not abuse its authority to force the others to purchase the commodities from the pointed seller or prohibit the fair competition from the others. The government and its organ shall not abuse its authority to prohibit outside commodities from going into home market, or prohibit domestic commodities from going to outside market”. English translation is based on http://en.pkulaw.cn/display.aspx?cgid=6359&lib=law. Accessed 6 March 2015.
- 46.
- 47.
ZhonghuaRenminGongheguoJiageFa (中华人民共和国价格法) [Price Law of the People’s Republic of China] (promulgated by the Standing Committee of the National People’s Congress, 29 December 1997, and effective on 1 May 1998) available at http://www.pkulaw.cn/fulltext_form.aspx?Db=chl&Gid=19158&keyword=%E4%BB%B7%E6%A0%BC%E6%B3%95&EncodingName=&Search_Mode=accurate (in English and Chinese). Accessed 6 March 2015. This law was enforced by the National Development and Reform Commission (NDRC) and local price administration agencies. Article 14 in Chapter 1 of this law prohibits price fixing, dumping sales at below cost prices and price discrimination.
- 48.
Chan (2009), p. 268.
- 49.
Article 23 of the Price Law.
- 50.
Article 45 of the Price Law.
- 51.
Liu and Qiao (2012), p. 79.
- 52.
ZhonghuaRenminGongheguoZhaobiaoToubiaoFa (中华人民共和国招标投标法) [The Bidding Law of the People’s Republic of China] (promulgated by the Standing Committee of the National People’s Congress on 30 August 1999, effective on 1 January 2000), available at http://en.pkulaw.cn/display.aspx?cgid=23176&lib=law (in English and Chinese). Accessed 06.12.2014. See Article 32 in Chapter 3, “Tenderers shall not collude with each other in setting bidding prices, nor shall they exclude other tenderers from fair competition and harm the lawful rights and interests of the tenderee and other tenderers. Tenderers shall not collude with the tenderee in injuring the interests of the state, general public and other people. Tenderers shall be forbidden to win any bid by offering any bribe to the tenderee or any member of the bid-evaluation committee”.
- 53.
Chan (2009), p. 268.
- 54.
Article 6 of the Bidding Law.
- 55.
Article 63 of the Bidding Law.
- 56.
- 57.
Chan (2009), p. 268.
- 58.
Jung and Hao (2003), p. 129.
- 59.
Liu and Qiao (2012), p. 84.
- 60.
- 61.
- 62.
Chan (2009), p. 271.
- 63.
Wang (2008), p. 149
- 64.
Wang (2004), p. 294.
- 65.
- 66.
Huang (2008), p. 122.
- 67.
Jung and Hao (2003), p. 134.
- 68.
Fox (2008), p. 173.
- 69.
Haley (2004), p. 277.
- 70.
After the SETC was abolished during the government agency reform in 2003, the Ministry of Commerce (MOFCOM) was responsible for many of the duties of the former Ministry of Foreign Trade and Economic Cooperation (MOFTEC) and the SETC. Since then, the MOFCOM participated in the drafting of the AML. See Owen et al. (2008), p. 260.
- 71.
- 72.
- 73.
Jung and Hao (2003), p. 108.
- 74.
Huang (2008), p. 131.
- 75.
New Changes on the Draft of the AML—Provisions on Prohibiting Administrative Monopolies were deleted (反垄断法面临新变数,禁止行政性垄断条款被删除), Xinhua News, 04 April 2006, available at http://news.xinhuanet.com/newscenter/2006-04/04/content_4383884.htm. Accessed 6 March 2015.
- 76.
Harris (2006), p. 214.
- 77.
Owen et al. (2008), p. 255.
- 78.
Article 8 of the AML.
- 79.
Chapter V of the AML.
- 80.
Article 51 of the AML, English translation available at http://english.peopledaily.com.cn/90001/90776/90785/6466813.html. Accessed 6 March 2015.
- 81.
- 82.
- 83.
- 84.
Fox (2008), p. 173.
- 85.
Huang (2008), p. 131.
- 86.
Gerber (1994), pp. 101–102.
- 87.
Gerber (1998), pp. 345–347.
- 88.
Gerber (1998), p. 343.
- 89.
Intergovernmental Committee of the Messina Conference, Report by the Heads of Delegations to the Foreign Ministers (“Spaak Report”), April 21, 1956. Akman (2009), p. 278.
- 90.
Gerber (1998), p. 343.
- 91.
Gerber (1998), p. 343.
- 92.
Gerber (1998), p. 343.
- 93.
Craig and de Búrca (2008), p. 605.
- 94.
Craig and de Búrca (2008), p. 605; Weishaar (2011), p. 111; European Commission Enterprise and Industry (2010), “Free Movement of Goods: Guide to the Application of Treaty Provisions Governing the Free Movement of Goods”, Luxembourg: Publications Office of the European Union, available at http://ec.europa.eu/enterprise/policies/single-market-goods/files/goods/docs/art34-36/new_guide_en.pdf. Accessed 7 March 2015.
- 95.
Marquis (2013), pp. 77 and 81.
- 96.
Marquis (2013), p. 80.
- 97.
Gerber (1998), p. 341.
- 98.
Gerber (1998), p. 344. On Article 106 TFEU, see also the contribution to this volume by Mel Marquis.
- 99.
Craig and de Búrca (2008), p. 1075.
- 100.
Marquis (2013), p. 91.
- 101.
- 102.
Ma (2014), pp. 45–57.
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- 104.
Yu and Zhang (2013), p. 215.
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Yang (2002), pp. 170–171.
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- 107.
Ahlborn and Padilla (2008), p. 40.
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Kirchner (1998), pp. 513–523.
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Aydin and Thomas (2012), p. 537.
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Fox (2006), p. 725.
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Roeller (2011), p. 289.
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Roeller (2011), p. 289.
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Van den Bergh (2007), p. 31.
- 116.
Van den Bergh (2007), p. 33.
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Jones and Sufrin (2010), p. 43.
- 118.
Weishaar (2011), p. 111.
- 119.
For example, in 1972, in the first annual report on competition policy, the Commission clearly stated that the primary goal was to protect market integration: “Concerning the competition applicable to enterprises, Community policy in the first place must prevent the substitution of state restrictions and obstacles to trade which have been abolished, by private measures with similar consequences”. Premier rapport sur la politique de concurrence (1972), at 13. The Report was originally written in French. The quoted text was translated by Hawk. Hawk (1972), p. 231.
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Gerber (1994), p. 108.
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Marquis (2013), p. 113.
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Marquis (2013), p. 116.
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Acknowledgement
I am indebted to Stefan Weishaar and Niels Philipsen for their helpful and insightful comments and suggestions. My sincere gratitude also goes to Michael Faure, Roger van den Bergh and Mel Marquis for their help and encouragement. Profound thanks to all the participants at the conference on “Market Integration: The EU Experience and Implications for Regulatory Reform in China” held at China University of Political Science and Law (CUPL) on 12 May 2014.
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Ma, J. (2016). Market Integration as the Goal of Competition Law: The EU Experience and Its Implications for China. In: Philipsen, N., Weishaar, S., Xu, G. (eds) Market Integration: The EU Experience and Implications for Regulatory Reform in China. China-EU Law Series, vol 2. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-48273-5_2
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