On Longitudinal Monopoly Agreement

Monopoly agreements, refers to two or more operators to the agreement, resolution or other ways of implementing joint operations to eliminate or restrict market competition. Depending on the level of agreement of the parties at both sides of the transaction, the monopoly agreement divided into horizontal and vertical monopoly agreements monopoly agreements. The vertical monopoly agreements which is made by different market players in different productive chains to keep the competition from exotic company far away. It is said that vertical monopoly agreements have a negative impact on competition, as same as the horizontal monopoly agreements in earlier theory and practice of Antirust law, so they adopted a more stringent attitude on the vertical monopoly agreements. With the theory of further research, researchers have found that the economic impact of vertical monopoly agreements more complex, the appropriate vertical agreements to promote the social and economic effects, but excessive vertical monopoly would undermine the market competition order, hinder economic development.Thus, in practice we cannot treat vertical monopoly as strictly as horizontal monopoly agreements regulating monopoly agreements, we cannot be simply banned for its surface illegal, applying the per se rule. Vertical monopoly agreements include vertical price restraints and vertical non-price restrictions, given the different effects produce different results on the economy, Within the framework of the antitrust laws, the use of economic knowledge, longitudinal monopolistic behavior, so we assess the effect on competition must consider related factors such as, the adequacy of competition in the relevant market, whether the relevant market has a strong market position, and motivation of vertical monopoly agreements.Currently, United States and the European Union have more mature research on antitrust law, the applicable legal standards on the vertical monopoly agreements, through strict per se rule, the rule of reason, and the principles of law, exceptions to the principle of immunity. Although China’s current "anti-monopoly" were legal regulation on the vertical monopoly agreements, the legal terms are too abstract, there are still some problems in specific legislative, judicial, law enforcement level, such as different vertical monopoly agreements determined the legal nature, private litigation eligibility determination and allocation of burden of proof. For lack of a tradition antitrust law, we should absorb and learn from some of the successful practices of other countries such as the United States and the European Union. In the process, to distinguish different forms of vertical monopoly agreements, resale price maintenance agreements should apply strict legal standards as other serious restriction of competition monopolistic behavior, but for non-price vertical restrictions, considering the competition, giving reasonable legal evaluation. Therefore, in the design of specific measures, we not only pay attention to the legal nature of the identified vertical monopoly agreements, but also consider the specific situation of China, analyze the effect of the implementation of the law, in order to promote the implementation of China’s anti-monopoly law,a detailed scientific and reasonable provisions make clear from the legislative level, the level of judicial and law enforcement level.