The Research On Predatory Pricing And It's Legal Regulation

Predatory pricing is a typical kind of exclusive behavior that some dominant enterprises abuse their advantages to pursue and keep the monopoly and then to exclude other competitors by sale prices lower than cost price in certain scale of markets during certain period. After excluding the competitors and forming the monopolistic construction, these enterprises will raise up the price to a great extent to gain monopoly profits. This behavior will do great harm to the developments of the market economy, because it disturbs the normal business, further strengthens the market ascendancy of advantageous enterprises, changes the centrality of this trade and leads to the monopolization, and ultimately damages consumers'long-term behalves and social interests. Predatory pricing is forbidden in legislated competition laws of various countries. But how to judge the behavior of predatory pricing is still controversial in academic and pragmatic circles at home and abroad. With the reform of our economic systems, unfair pricing competition like predatory pricing begins to emerge in our economy. But our incomplete economic systems, imperfect competition law systems and the immature relevant laws and stipulations consequently result in ineffective judgment and practice. This paper will analyze the constitutive requirements of predatory pricing and its practice, which based on the systematical discussion of the legal regulation of predatory pricing in anti-monopoly law, and give some advices on how to improve Chinese anti- predatory pricing legislation. This paper consists four parts: Part One: summarize of predatory pricing. Begins with the concept and essence of the predatory pricing, part one illustrates what is the predatory pricing, how statute laws of other countries regulate this behavior, and also analyzes the reason of regulating predatory pricing. Part Two: to analyze the constitutive requirements of predatory pricing. This part will fully discuss the five requirements including subject, subjective intention, object, damages, possibility of compensation. These requirements are considered customarily in judging predatory pricing in many countries, although various countries emphasize particularly on some of these requirements. Part Three: to analyze practice of execution of predatory pricing. This part, combining with the classical predatory pricing cases of USA, the author elaborates the variance of criterions of the predatory pricing and its development in practice of USA. Then briefly introduces the practice of European Economic Community, which is slightly different from USA. Finally indicates that the criterions of predatory pricing possess great flexibility, and the relation between cost and pricing is the core issue in judging predatory pricing. Part Four: analyses, regulations and suggestions of predatory pricing in China. This part focuses on the relevant laws and stipulations of China, points out the limitations of competition law systems, and then put up some advices on legislation of anti-predatory pricing in accordance with the situation of our country in the extant legal system.