On Legal Regulation Perfection Of Natural Monopoly Industries Of Our Country

Telecommunications, electric power, railway transportation, civil aviation, coal gas and running water supply etc. have been considered as natural monopoly industries. Their remarkable characteristic is to have economies of scale, economies of scope, network quality and sinking cost. But natural monopoly is relative。On the one hand, in static, natural monopoly industries have competitive business; on the other hand, in dynamic, with the changes of the demand and technology, the boundary of natural monopoly industries become narrower and narrower. Near these decades, foreign countries have relaxed the regulation of natural monopoly industries progressively and introduced competition mechanism. The reform of natural monopoly industries of our country certainly should follow this historical trend. But at the same time, we should notice that some alienation has appeared in natural monopoly industries of China. That is, the administrative monopoly formed under planned economic system is attached to the natural monopoly industries. This paper attempts to find a great deal of questions of natural monopoly industries of our country, and make an analysis on cost and income of them. On the basis of this, the author indicates the necessity of legal regulation on natural monopoly industries of our country. Nowadays, there are two kinds of law. One is against the illegitimate competition law , the other is industries special law . But, The relevant regulations are too simple and coarse in against the illegitimate competition law. The industries special law, such as electric power law and railway law etc., mostly legislated before the reform, they are unable to meet the need of further reform. Anti-monopoly law of our country fails to issue, some industries do not have special law. After comparatively studying the various regulation measures of different countries, this paper attempts to probe into the regulation system of natural monopoly industries systematically. Through the coordination function of anti-monopoly law, special industries law and other relevant laws, we can insure the healthy development of natural monopoly industries of China. We should solve these problems emphatically, for example, bottleneck monopoly, universal service, abuse market power, price regulation, the entry of private capital, the strong and neutral regulation institution etc.