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Financial Conglomerate Regulation Of Monopolistic Behavior

Posted on:2009-05-01Degree:MasterType:Thesis
Country:ChinaCandidate:C L YinFull Text:PDF
GTID:2206360248451008Subject:Economic Law
Abstract/Summary:PDF Full Text Request
The Financial Enterprise Group (FEG) is a common economic phenomenon in modern society. Its emergence and development have promoted global economy to be further, but it have also brought challenges for the traditional law at the same time. In the financial field, a lot of monopoly behaviors against the competition are all contacted with the FEG more or less. For example, independent Financial enterprise expands market share by setting up FEG. Also the FEG squeeze the competitors by abusing the behavior that the market arranges the status, to obtain great amount of profit. Besides, the subsidiaries of FEG reach agreements such as regular price , divide market etc restrain the competition agreement to lightening or eliminating the competition. Antimonopoly Law that has already been issued and will soon be put into effect is just a basic law. This law doesn't say a word to the monopoly behavior by FEG, but only sets some general principles. In the academia, the research on this problem just started too. So, the research on monopoly behavior of FEG still has certain realistic meanings for both theoretical research and legislative practice.The development of FEG is based on scale economy and range economy .It can strengthen its own capability,implement market to be centralized,restrain competition and abusing market dominant position. This thesis, through using the research methods, such as legal economics,comparative jurisprudence,real example analysis and law explain, has analyzed and studied the legal problems of Antimonopoly Law regulation of FEG.This thesis includes five parts. Part one, has mainly expounded the necessity of regulate the behavior of FEG. First of all, by analyzed three kinds of main FEG: commercial bank,non-banking financial institution and industry capital investment, analyze the reality of regulation to FEG. Then, based on it, set out from development logic of the FEG has explained the FEG is the result of changing from separately to mixed operation by the global financial industry. In addition, it has explained especially that the necessity of the FEG relies on their enormous external ride, which may be produced in antitrust regulation,destruction to competition mechanism. Finally, as regards the relation between FEG and antimonopoly law, the two have certain conflicts and tense, but at the same time, the implementation law offers the system guarantee and good environment for development of the FEG. Besides, there is also certain promotion for the FEG to develop successfully.Part two: has mainly analyzed the theoretical foundation of the regulation of FEG. The legal principle foundation of FEG lies in completeness of law and fair and just value of the law. The domain of economics, the foundation that the FEG exists relies on scale economy and range economy. It is a pair of concepts with close ties to monopolize with the competition, which is regarded as the contradiction entity, and they have reflected the contradiction sports in the productivity evolution under the large-scale social production and market economy condition. Meanwhile, the social base of the FEG lies in Financial monopolizing becoming the key of success or failure in the reform of financial system and even the whole market.Part three, about the monopoly behavior of the FEG. Have analyzed and studied the special discernment of the monopoly behavior .First of all, the FEG will involve a large number of financial enterprise's amalgamating, management and hold centralized behavior such as the stock right act during the process of constructing and developing .And these centralized behaviors may jeopardize to the competitive environment of the whole financial market, which needs antimonopoly law to carry on structure to it. Secondly, the FEG in the curse of market competition, in order to obtain the higher profit, every subsidiary tend to behave under the suggestion of the holding company. In order to benefit group, they do such behavior as implementing regular price, restrict products or quantity of service, cutting apart the market, exclusive trade agreement and alternative trade agreement act jointly exercising restraint in competing for others. Thirdly, the FEG carry on the unfair trade to the other companies after making certain market share and economic strength, by getting rid of the rival or restraining the market of abuse of the competition from arranging the monopoly behaviors of the status in other ways. The abusing on market dominant position mainly includes predatory pricing of the status behavior, exclusive trade, pairing usable up with goods that sell well and discriminating against the treatment act. Part four, mainly on the particularity expansions which are suitable to apply the antimonopoly law, and it describes around monopolizing the behavior in the FEG. First of all, the FEG is a special subject of the antitrust legal relation. It has loud particularity especially in organizational form,monopoly behavior way,legal liability act. Secondly, there are two different ways, structuralism and behaviorism, which are suitable to apply in the antimonopoly law in the FEG. The two each have pros and cons. It is comparatively severe that the structuralism controls the method, while it is gentler that the behaviorism controls method. So, it is better that methods should be mixed and used by structuralism and behaviorism. Then ,we can follow the substitutability of crossing of the products,sales range,demand time act. While defining relevant markets, to consider product market,region market,time market. In addition, in the definition of financial market dominate position, many countries have used several kinds of standards such as performance scheme,market behavior scheme and structural scheme of market of the market, among which the structural scheme of market should be used preferentially. Finally, there are two principles to affirm the monopoly behavior of FEG, which are rational principle and per se doctrine. The rational principle has reflected the flexibility of the antimonopoly law, and is playing a more and more important role in the antimonopoly laws in many countries.Part five. Foster and implement the environment to the current situation of the development of FEG in our country, and legal culture of anti-monopoly. Considering the current legislation situation of regulation on FEG and the existing problems .This thesis has proposed several suggestions on setting up legal system to regulate the monopolizing behavior of the FEG in our country.In order to reach scale economy and range economy, the FEG controls the subsidiary. It may be good to its own development, but be a double-edged sword for the development of the whole social economy. Because the strong relevance of financial products and the weak relevance of financial resources make financial industry tend to form monopoly. So, to competition risks brought during the process of pursuing range economy and scale economy by FEG, we need to provide for a rainy day and carry on the regulation to all sorts of behaviors and risks of infringement competition by Antimonopoly Law.Financial industry has been always considered as the key trade of the national economy and the people's livelihood. For its importance, on the development of every reformation to financial industry of our government takes extremely cautious, and market-based process is slow, which is our most serious planned economy industry at present. Among them, the degree of monopoly in banking industry is high. It is comparatively that they always abuse advantageous position, encroaching on consumer's interest, compared with insurance industry and securities business. The illegitimate competitions behavior is general in financial industry. However, because the whole financial industry has just finished the transition from administration to market monopolization, not totally getting rid of its administrative characteristic yet. The main provider of the financial service is still state-run or state holding organizations. It can be considered that, the whole financial industry is still a monopolizing market. So, generally speaking, the urgency with antitrust should be higher than the illegitimate competition in financial industry.
Keywords/Search Tags:Financial Enterprise Group, Anti-monopoly, Regulation
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