On The Building Of A System Of Punitive Damages Within The Framework Of The Antitrust Law

Punitive damages refer to the part of the payment which exceeds the actual damaged value. As a special civil liability different from damage compensation, punitive damages are drawing more and more attention from the legislators because of its functions of compensation, deterrence and stimulation. Such indemnities are then introduced to the antitrust law, with the American Treble Damages and the Treble Damages of Taiwan being the most representative. In Chinese mainland, the antitrust law lacks a system of damage liability, thus the effects of the law in terms of relief, precaution and implementation are unsatisfactory, and therefore, in the antitrust field, a punitive damage system should be established on the basis of the experience learned from the U.S and Taiwan, and in accordance with our own specific situation.The essay makes a historical study to analyze the transformation of the system of punitive damages, a legal research to summarize the definition and connotation of this system, as well as its purpose, function and legal value, a comparison to identify the differences and similarities of the legislative and judicial practices of punitive damages within the two major legal chains, so as to prove the necessity of a system of punitive damages within the anti-trust realm in China, and lastly, an analysis of law and economics to explore the way of system building and set the range of punitive damages.There are 4 chapters in the essay. The first chapter focuses on the general legal principles of punitive damages in anti-trust law, its historical transformation and the necessity of introducing such a system into the anti-trust field. The second chapter analyzes the system of punitive damages in anti-trust law, introducing the practice of other countries and regions, and summarizing the experiences or lessons for our own legislation. The third chapter talks about the institutional demands for such a system, and analyzes the consequences caused by the lack of such a system in anti-trust law, showing how such a system can fill up the deficiency. The fourth chapter explores the design of the system, including the results of the author's research and some suggestions for future legislation, such as the application of punitive damages to violations of anti-trust law. The four essentials which lead to punitive damages within anti-trust law are:l.The person conducts monopoly which is prohibited by the anti-trust law and is judged illegal according to the "Per Se Rule" and the "Rule of Reason";2.The damages should be inflicted to properties or operation of business;3.The violation is caused by the person's intention or negligence;4.There should be an indisputable causation between the action of the person and the damages.The author suggests that it is proper to set the range of punitive damages at a double-indemnity level plus reasonable fees of investigation. The calculation should be based on actual damage (in most cases, the actual loss). As for the horizontal monopoly agreements described in Article 13 of the Anti-Trust Law, and the exploitative abuse in Items 1 of Article 17, the damage standard can be made depending on the infringement of relevant interests.