China Business Times: Price monopoly depends on regulation

This reporter Shi Jun NDRC recently issued "anti-price monopoly provisions" and "counter-price monopoly administrative law enforcement procedures", on the price monopoly agreement, abuse of market dominance and abuse of administrative power exclusion limit competition, and other three types of price monopoly behavior of the manifestation and liability of the provisions. The NDRC also said that in order to ensure the implementation of the anti-monopoly regulations, it would consolidate and strengthen the law enforcement force against price monopoly and set up a specialized antimonopoly law enforcement agency.　　These two regulations will be implemented from February 1 this year.　　The National Development and Reform Commission price Supervision and Inspection Division director Hucunlin in the media interview that water, electricity, gas and other government-priced goods are not within the scope of supervision, price level of the details of the need for comprehensive consideration. "Anti-price monopoly provisions" expressly prohibit eight kinds of price monopoly agreements, for example, prohibiting the operators of competitive relations to reach fixed or change the price of the monopoly Agreement, trade associations shall not be able to exclude, limit price competition rules, decisions, notices. The abuse of market dominance in terms of price, "anti-price monopoly regulation" has refined six types, prohibiting the operator and the counterparty to achieve fixed commodity resale price and limit the minimum resale price of the agreement; the operator with market dominance shall not engage in unfair high sale, unfair and low price purchase,　　In the price of different treatment, additional unreasonable fees and other six types of price monopoly behavior. It is advantageous for the operator to enforce the Antimonopoly law and to operate and execute the price department.　　At present, these two regulations, for the suppression of operators, including some trade associations, organizations or collusion in synergistic price increases, but also has realistic significance and role, can better promote market competition and protect the interests of consumers. In addition to the enterprise's price monopoly of the detailed provisions, the new rules of the Department of Administrative organs and laws and regulations authorized by the administration of public affairs functions of the Organization shall not abuse the executive power, forcing the operator to engage in price monopoly, or to set up the provisions containing exclusion, limit price competition content　　, no discriminatory charging items should be set up for external commodities, discriminatory fees should be imposed or discriminatory prices should be imposed. "Anti-price monopoly regulations" prohibit competition-related operators to reach a fixed or change the price of the monopoly agreement, including: fixed or change the price level of the commodity, fixed or change the price changes, fixed or change the price has an impact on fees, discounts or other charges Using the agreed price as the basis for dealing with third parties, agreeing to adopt the standard formula based on which the price is calculated, and agreeing not to alter the price without the agreement of other operators, and to fix or change the price in a disguised manner. At the same time, "anti-price monopoly provisions" also stipulates that the operator may not be with the transaction of the opposite person to achieve fixed commodity resale price and limit the minimum resale price agreement.　　Trade associations shall not make rules, decisions or notices to exclude or limit price competition, and shall not organize the operators to reach a price monopoly agreement prohibited by this provision. At the same time, the "counter-price monopoly administrative law enforcement procedures," the report to accept, investigate measures, according to lawProcessing and the responsibility of the price authorities, etc. are clearly stipulated. Special provisions, in order to encourage operators to actively report violations, requiring the operator to report to the government price authorities on the initiative to reach the price monopoly agreement and provide important evidence, according to different circumstances, can be exempted or mitigated punishment.　　Among them, the first initiative to report a price monopoly agreement and provide important evidence, can be exempted from punishment.　　In addition, in order to ensure the implementation of the new regulations, the NDRC said that it would consolidate and strengthen the anti-monopoly law enforcement force, set up a specialized antimonopoly law enforcement agencies, supplementary professionals, to provide personnel and organizational security supervision. At the same time as the release of these two regulations, the National Development and Reform Commission today issued a message: "Zhejiang Province Fuyang Paper Industry Association to achieve a price monopoly agreement was severely punished", Hucunlin clearly that will further increase the price of the regulation of monopolistic behavior, to investigate all kinds of violations of the anti-monopoly law, the price violations,　　Expose a batch of typical cases. With the people living closely with the water, electricity, gas, refined oil and other commodity prices belong to the government pricing, through the formulation and adjustment of government price policy to solve, for example, electricity price it is a natural monopoly, the State mainly through the strengthening of cost supervision and examination, reasonable price, and therefore does not belong to the regulation of anti-price monopoly within the scope "Anti-price monopoly regulation" is mainly aimed at market regulation price and some government guidance price, it is to the enterprise, the operator's pricing behavior supervision. Of course, like the oil industry it has moderate competition, and in some ways it applies to this provision.　　For example, if PetroChina, Sinopec two agreed to say, we do not sell petrol in Beijing, this is collusion, is a violation of the "anti-price monopoly provisions", should be punished. According to Hucunlin, quantification is really difficult, in general, according to the level of the previous cycle, or the surrounding area, the same price level of similar products to compare, but also to consider a number of other factors, such as whether there is profit from it and so on. But in general, it is also difficult to quantify all the operations, and the price situation is different in all walks of life.　　The NDRC, which sought advice from lawmakers, also said it could hardly be done. Industry insiders believe that the perception of monopolistic interest groups must rise to the political level. Whether it is monopoly state-owned enterprises or monopoly enterprises, in the face of policy changes, they will certainly find ways to carry out political public relations, because as long as China still has "no market to find the mayor" opportunities, then the economic people will tell the operator, must be the mayor, seek political resources, in order to obtain more resources allocation. Of course, the monopoly of private enterprises is still relatively small, they usually play the monopoly of state-owned enterprises under the "Xiaoxifu" role, is the doormat. But the worry is that once the antitrust enforcement agency is monopolized by the state-owned enterprises to carry out strong political public relations, this anti-monopoly agency becomes the sword that monopolies the state-owned enterprise to hurt private companies, it is not impossible. To avoid thisCan, we should make anti-monopoly law enforcement agencies have strong independence, not to be a monopoly interest group to use the political public relations mechanism to "stop the food." It is always an anomaly for a mature market economy society to decide resource allocation by politics. It is not easy to cut off the interests chain of monopolistic interest groups, and it will be hindered by many obstacles. We have to admit that we have a long way to go in a mature market economy, and the era of resource allocation led by the market needs to redouble its efforts. But in any case, the emergence of anti-monopoly law enforcement agencies is a big victory in the market economy, with such a victory to maintain the basic market operation rules, the market economy tomorrow may become better, for the anti-market forces to curb more likely.