Abuse And Regulation

This article focuses on antitrust law regulating the act of abusing of dominant position,taking the regulations and cases in USA,European and other nations and regions as example,analyses economically in its act,explores its reasons,approaches,and effects in details,and examines the success and failure of its related systems. The author takes comments on cases of antitrust law as the thread,considers the impact resulting from all kinds of factors in the historical development of antitrust law through the whole paper. No other law is so deeply affected by the theory of economics as antitrust law. The author keeps the particularity of antitrust law in mind,which showed by the brand which the government's economic policy left over in the enforcement of antitrust law. This paper contains eight chapters as follows:Chapter I,which constitutes the foundation of the whole analysis,discusses the economic theories related with antitrust law. Among these theories,price and industrial organization theory is of special concern. Cost/price analysis is the foundation of the analysis of abuse as well as the standard to just the abuse. Four competition models of industrial organization theory,though not reflect economic reality perfectly,supplies a clear analysis frame for the theoretical research. In this article,the differences between views of Harvard school and Chicago school are compared and the role of economics in case analysis of antitrust law is discussed.Both objective and basic rules of antitrust law are discussed in Chapter II. The fundamental objective of antitrust law is to maintain the competition mechanism. In addition,such social objectives are considered as protecting consumer's interest,advancing innovation and technological progress,protecting fairness and justice,and maintaining economic foundation of democratic institution. This chapter also discusses the origin,development,and the combination of the rule of reason and per se offense which are basic rules reflected hi legislation and enforcement of antitrust law in many countries.Chapter III discusses the subject of abusing of dominant position,the definition of market predominance,and the composing essential of abuse,comparing three concepts,i.e. market predominance,monopoly,and market control strength. The constitute of market predominance is divided into three parts:the definition of relevant market including product market,geographic market,and time market;the criteria of market predominance;and the market predominance resulting from the relying between the enterprise and another two enterprises or above. The abuse is an objective conception,which has rigid composing essential.Excessive pricing is analyzed in Chapter IV. Firstly the necessity of regulation on excessive pricing is discussed. Besides introduction of regulations in several countries and regions,this chapter stresses on the excessive pricing and regulation of natural monopoly enterprises,hi the author's opinion,it is necessary to regulate natural monopoly enterprises through law considering the possibility and reality of excessive pricing. Both the investment returns price regulation in U.S. and the maximum price regulation in U.K. have advantages respectively. However,an incentive price regulation will be more appropriate for natural monopoly enterprises. The author then explains his views of reformation of natural monopoly enterprises together with creation of competition mechanism.Chapter V draws upon price discrimination,involving its concept and definition,its motiveand composing essential,its approaches and types,its impact to competition,and its deraignment. The difference between price discrimination and arbitrage,the regulations of price discrimination in some nations and regions,and the argument about preservation and abolish of price discrimination law are also explores in this chapter. From the author's point of view,although it is certain difficult to define its impact on restrained competition,it is necessary for the law of price discrimination to be exist.