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Research On The Anti-molopoly Of Internet Industry

Posted on:2017-02-09Degree:DoctorType:Dissertation
Country:ChinaCandidate:K ZhangFull Text:PDF
GTID:1226330488976857Subject:Economic Law
Abstract/Summary:PDF Full Text Request
With the rapid development of the information technology, the Internet industry has become one of the most flourishing and competitive industries in nowadays world economic development.Research on the antitrust issues of Internet industry has great theoretical and practical significance on enriching the anti-monopoly law system and addressing the issues ofanti-monopoly laws applying to the Internet industry.The logic of this paper is facing the particularity of the Internet industry anti-monopoly and regulatory lagging, based on the basic theories of antimonopoly rules, in view of the characteristics of network externalities, bilateral market, compatibility and standardization, dynamic and innovative of the Internet industry which different from the traditional business, and combined with some typical antitrust casesat home and abroad in recent years, targeted analyzedthe technical difficulties such as defining related market, identifyingmarket dominantposition and monopoly behaviors while applying the anti-monopoly law to internet industry, and refer to the theoretical analysis and practical experiences from the developed anti-monopoly law jurisdictions, and gives a practice comments and foresight to theChinese anti-monopoly on Internet industry, and has proposedsome constructiverecommendations.Technical difficulties facing the Internet industry anti-monopoly are mainly three aspects. First, Internet industry characterizes as network externality, bilateral market, compatibility and standardization, dynamic and innovation. A narrow definition of relevant market harasses not only by qualitative method like substitutable demand analysis of traditional anti-monopoly law, but also quantitative SSNIP test method. Second, Internet enterprises dominating market has features distinct from traditional industry. Internet industry influenced by network effect, gets preemptive Internet enterprises into a situation where the winner takes all, and then intensifies their market dominant position by compatibility and standardization of Internet products or services. Meanwhile, in Internet industry, due to the market features which are innovation competition being greater than price competition, as well as simultaneous two-way movement of monopoly and competition, and also the market structure in which stability and mutability coexist, the market share of Internet enterprises is under long-time unsteady changing, which makes it hard to affirm those enterprises’market dominant position by usingtraditionalways.Third, operators in Internet industry abuse more complexly market dominant position than those of traditional industry. For example, they abuse price, conduct exclusive dealings, refuse to deal and arrange tying. All those monopoly behaviors often trap anti-monopoly enforcement, because they obstruct competition order of Internet industry, though, they can also promote Internet market economic efficiency.As for these predicaments occurred in the process of Internet industry anti-monopoly, this paper insists innovative thinking, overcoming difficulties in the aspects of concepts and technology. Firstly, in the demarcation of the Internet related markets, we should improve the traditional SSNIP test method and sparing no effort to solve the following three problems exists in the process of adapting the SSNIP test method to the Internet industry:the choice of the basic price; considering the cross-network externality in the bilateral requirement, whether to think about the individual benefits or consider the integral benefits; whether to allow the assumed monopolist to adjust the price structure or not. Based on the Internet industry characteristics, we also should define the Internet related products market by using profit model test method, product performance test method, cluster market definition method, sub-market definition method, and the subordinate market definition method. In the demarcation of the related geographic market, adapting the corresponding classified definition method according to the Internet products’ quality and competitive condition. We should base on the features of the Internet industry, such as the rapid technology innovation, dynamic competition market structure, product life cycle, intensive intellectual property, take time into consideration as one of the essential factors in the process of anti-monopoly. Secondly, in the demarcation of the market dominant position, we should give full consideration to the effects of Internet industry network effect and lock-in effect as well as the rapid innovation, improve the calculation method of the traditional market share and examine the impediment of market access caused by the entering to barrier factors of Internet industry new market. Thirdly, on the monopoly regulation, based on rapid technology innovation and dynamic industry of Internet industry, products and services are information products, they are highly knowledge based, so their prices are decided by the advancement of the technology as well as the degree of consumer recognition. Conspiracy to control product prices is not only fail to restrict the technological competition between Internetindustries, it will cause more potential competitors entry markets. So, we should fade the co-control of Internet enterprise, relieve Internet concentration control, and strengthen the control of abusing the market ascendancy by the Internet industry.Based on the legal research spirit of conducting theory under the guidance of practice, thethesisanalyzesthe typical cases of anti-monopoly in the IT industry and conclude that the principle of rationality shall be used to regulate the monopoly actions in IT industry and the influence of structuralism regulation shall be weakened while the regulation of behaviorism shall be strengthened on behavior regulation and merge control of abusing of market dominant position in IT industry. On account of the competitive situation and development trend in China’s IT industry, combines with some typical anti-monopoly dispute cases in domestic IT industry that occur in recent years and draws the conclusions. Firstly, the current anti-monopoly legislation in China fails to meet the requirements of anti-monopoly in IT industry. The current competition legal system in China is a separation of legislation in anti-monopoly and anti-unfair competition respectively. The crucial problems are, in this legal system based on separate legislation, overlaps as well as repetition and even contradiction in contents. The current anti-monopoly legislation is inoperable in general. Although the Manual on Definition of Relevant Market by Anti-Monopoly Committee of the State Council in China is carried out much later than Europe and U.S., the features of network effect, bilateral market and rapid innovation in IT industry are not taken into consideration. As a result, anti-monopoly enforcement agency sometimes has no idea to cope with the cases of abusing of market dominant position and concentration of undertakings in IT industry.Secondly, the existing law enforcement mechanism is not conducive to the implementation of the anti-monopoly law. China’santi-monopoly lawhas some drawbacks in system design, implementation mechanism, especially theinstitutional problems in the aspect of law enforcement agencies and law enforcement procedures. Thirdly, the civil procedure rules can’t meet the requirements of judicial practice.The evidence distribution burden still unclear in some related marketsdemarcation,as well as lacking of proof standard in these markets.Therefore, this thesi stakes the view of Internet industry anti-monopoly, aims to explore the perfection of anti-monopoly system in our country based on the theoretical analysis and empirical analysis results of U.S. and EU applying anti-monopoly to Internet industry. This paper takes the view that the basic principles of Internet industry anti-monopoly should be embodied:the principle of competition policy superior to industrial policy; the principle ofbalancing efficiency and fairness; further perfect anti-monopoly regulation system; further optimize the anti-monopoly enforcement mechanisms;promote the modernization of competition culture.
Keywords/Search Tags:Internet industry, related market, abuse of market dominant position, Concentration of undertakings, Anti-monopoly regulation
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