Development of a Legal and Policy Framework on Competition
Different approaches are needed to address three different types of competition problems.
First are problems such as price cartels or pricing agreements, abuse of dominant positions and anti-monopoly concerns in merger and acquisition transactions. These involve violation of antimonopoly law and may be dealt with by legal action.
A second type of case is more complex, and involves coordination or interaction between trade policy and competition policy, rather than outright legal action against the monopoly.
A third case is more suitably dealt with under a competition policy framework. For example, a natural monopoly may exist in certain sectors due to economies of scale, as in telecommunications, railway, power transmission, energy and postal services.
In a developing country with a transition economy such as China, many anti-monopoly issues are inseparable from other development and reform policies and issues. These issues may be most effectively addressed through a system that allows for coordination in making and implementing competition and anti-monopoly policies.
ALSO OF INTEREST