Study Of The Rational Principle Of The Anti-monopoly Law

The anti-monopoly law is the basic law of Market Economy. Though there have been voices for legislation of Chinese anti-monopoly law, it's not been made. The reasons why there are objections to the immediately legislating Chinese anti-monopoly law are that it's difficult to solve following difficulties: protecting complete freedom of competition and utilizing efficiently economies of scale, maintaining international economic order and protecting China's economic interests, concentration limiting competition. Free competition permits competitors to thoroughly use market resources and participate in market transaction. Economics of scale often means high efficiency, but large businesses have legal influence over pricing, product and selling even market order is not affected by opportunism, and large business' activities may be unfair. Though it is declared that large business' monopoly state is not illegal itself, definition of monopoly state always initiates anti-monopoly procedure during applying anti-monopoly law to cases. Statutes often provide that what kind of dimension, concentration, qualification and scale of transaction are illegal. Therefore, it can not conclude that anti-monopoly law and policies are not applied to large business and economies of scale.The most important point of anti-monopoly policies is that law should reasonably deal with the relation of free competition and over-competition, fair deal and whole economies, efficiencies of economies of scale and interests of middle and small businesses, international economic order and nation's economy. Main reasons of anti-monopoly are that, monopoly and a limitation on competition result in limitation on product, negligent management, price monopoly, unfair transaction and absences of incentive competition, as basis of market system, competition results in best resource distribution and improvement of social welfare. So far anti-monopoly theories have not given strong explanations for over-competition, resource waste, economic crisis, government's intervention and market failure, Consequentlydifferent comments arise when some big anti-monopoly cases are present, because it is hard to say that there is not reasonableness in some accused activities.Modern economics regards some competition limitation activities as legal marketing strategies. Property rights theories have denied classical economics theories on complete freedom of competition. Modern economics theories have given out new explanations for relations amang business, market and government, which have explained that some activities against competition rules have reasonableness because of results of economic improvement and public interests, which have move positive effects than negative effects but it does not necessarily conclude that anti-monopoly law is not necessary.Ultimately, the essence of anti-monopoly law lies in reasonable judgement on competitions and monopolies, reasonable principles of anti monopoly law are the best answer to above mentioned questions according to foreign countries' anti-monopoly law and practices.Rule of reason has aroscn out of implementing of Sherman Act ?Rule of reason, Sherman Act and Clayton Act are the basis of American antitrust law. With developing rule of reason has been becoming the basic principle of anti-monopoly law, this paper thoroughly studies rule of reason aiming for establishing principles of China's anti-monopoly law. Specifically, this dissertation is divided into eight chapters.Chapter 1 is the definition of rule of reason. This chapter defines rule of reason and finds out its features, with studying the origination of America anti trust law, it deduces that rule of reason arises from the uncertainty of Sherman Act, which is the combination of statute and common law. With studying the EU anti-monopoly law, it concludes that rule of reason is not only the principle of American Common Law, but also the basis principles of anti-monopoly law, the other principles arc derived from rule of reason.Chapter 2 is the theoretic...