Theoretical Research, The Relative Market Dominance

For dealing with more and more fierce domestic and international competition and keeping the competition in order, the legislation of our country branch pays close attention to working out anti-monopoly law. Go over the manuscript of "PRC anti-monopoly law ", the main gauge of proposed law focuses on three kinds of behavior, they are enterprise merger, restricts the market competing by an agreement and abusing dominative position. Abusing market dominative position mainly setting mind on a standard, which is market sharing. An enterprise which owns very high market share is likely to be confirmed that it has a dominative position or monopolize position. However, in fact, there are some enterprises which do not have advantage on market share, but when trading in the market, some may have advantage to the traders because the traders are dependent on them. This kind of advantage is called relatively dominative position. This paper is mainly about the market relative dominative position and some topics around it. This paper also has studied legal system abroad and considering right way for China.The paper is composed of five parts:Part I has discussed relative dominative position theory's location in anti-monopoly law system. Making clear the relationship between relatively dominative position and the dominative position is essential. The same as dominative position, owning relative dominative position doesn't break the law. Only when the enterprise's decision is made independently without considering other competitor and customers'reaction, it is adjusted by law. However, these two kinds of position have very big differences on cause and judging standard, so they are both connective and each other independent. Three different attitudes are taken by many countries, the introduction to them are also maintained in this part.Part II studied the basis of dominative position, which is dependent relationship. Core concept in relative dominative position theory is "dependency". This theory originates from Germany, and according to the legislation and practice in that the country, the standard of judging"dependency"is if the dependent enterprise can rationally transfer its invest to other area. This paper has analyzed this important standard, and has emphasized case characteristic of dependent relationship.Part III andâ…£are about two kinds of relative dominative position behavior, One is the selling enterprises depend on the buying enterprises, the other is the buying enterprises depend on the selling enterprises. The former includes famous-brand product dependency, natural resources dependency, long-time contract dependency and essential facility dependency. The latter is to point to the small and medium size producer's dependency to large-scale retail dealer. Part V is a conclusion, with the development of Chinese economic, some enterprises seem ready to abuse relatively dominative position. It also can be seen in some cases, as large-scale manufacturers abuse long range contract forcing supporting business to reduce price, foreign enterprises abuse intellectual property rights, and large retail dealer forcing producers to accept unreasonable condition. Therefore, it's strongly suggested that the legislative branch considers these factors sufficiently in the process of working out anti-monopoly law and let it into this important law department.