Abuse of market dominance crowding out of SMEs will be subject to penalties
The National Development and Reform Commission recently announced “anti-price monopoly provision” (draft), to the community for public comment, which is anti-monopoly law since August 2008 since the implementation details of another anti-monopoly regulations. The industry believes that the main purpose of this provision is to standardize the market competition order, prevent and suppress acts of price fixing and protecting fair competition, protecting consumer interests and social public interests.
Price alliance behavior will be subject to legally binding
What is price fixing, how the definition of a monopoly? In this draft, clearly two kinds of price-fixing behavior: First, price-fixing agreement; second is abuse of market dominant position.
Shanghai Academy of Social Sciences Institute of World Economics King associate researcher in Sino-US believes that the so-called price-fixing agreements, refers to a price alliance, which is several major industry competitors to arrive at an alliance to eliminate the competition between them in terms of price on the full realization of the same.
Occurred in 2007, “the collective prices of instant noodles incident” is this price-fixing behavior. At that time, palm oil and flour prices due to increased costs caused by enterprises in the industry summit, noodle enterprises to reach agreement, a unified industry-wide price increase.
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