Problem Research Of Regulating On Abuse Of Dominant Relative Market Status By Large Tradesman

The slotting allowances exist excessively widely in China which may hinder the development ofretail trade and harm the relationship of retailers and suppliersLarge retailers excessively gather the suppliers’ slotting allowances and default on their loans.They buy or sell by force in transaction process. These behaviors cause intense conflict between theretailers and suppliers and disturb the fair and normal order of market competition, which raises wideconcerns from all works of the society. The abusive conduct of large retailers comes down to belong to thecategory of relative dominant position abuse. In our country, there aren’t specific or clear laws which makeregulations against relative dominant abuse particularly. Therefore how to know the behaviors and harm oflarge retailers’ relative dominant abuse and how to govern them better and create harmonious and healthymarket competition environment are the problems waiting for being solved immediately. The paper mainlydiscusses these problems from the parts.The first part focuses on the necessity of regularing large retailers’ relative dominant positionabuse by their behaviours and harm. First of all, the author makes analysis on the constituent elements ofrelative dominant position and abuse. The analysis leads that the behaviours of large retailer and kinds ofrelative dominant position abuse essentially. Owing to the opening of the market economy, China has fullaccess to the stage in which the retailers of the buyer’s market dominate the transaction process. Largeretailers seriously disturb the order of market competition and constrain the effect of market mechanism byover collecting the slotting allowances and defaulting on suppliers’ loans. It is highly abstract. In addition,the law doesn’t make explicit rules which department is responsible for Anti-monopoly enforcement work.It is authorized by State Council’s rules. It is easy to cause disconnection between rights andresponsibilities and deficiency of supervising.Secondly, the punitive strength of all the laws and regulations is not enough and rules of lawresponsibilities and not perfect. The cost of breaking the rules is too low. All these are apparently notenough to regulate the retailers’ abusing behavior. The law isn’t carried out very powerfully. It cannot strikethe behaviours of disobeying competition order very effectively. Thirdly, most trade associations disappear in all but name. They don’t afford the due duties andthe suppliers’ expectations. So we need to perfect related laws and regulations and improve relatedsupporting facilities as well as create harmonious and fair competitive environment.The fourth part analyses how to make regulations against the behavior of large retailers’ relativedominant position abuse effectively in China. Firstly, we must perfect Anti-Monopoly Law as soon aspossible, making specific rules on relative dominant position abuse behavior. Secondly, in order to promisethe smooth development of anti-monopoly work and protect the fair competitive order, we must create ahigh-efficiency, independent, professional and authoritative enforcement system, drawing on the experienceof other countries’ setting of anti-monopoly enforcement department. Thirdly, we can increase the cost ofbreaking the laws. While regulating the behavior of relative dominant position abuse, we should create acomprehensive legal responsibility system including administrative responsibility, civil liability andcriminal responsibility. Lastly, we must deeply encourage the trade associations’ development and improvetheir construction, giving full play to the role in the field of circulation. Under the premise of guaranteeingfree and fair competition of market, we should limit the behavior of large retailers’ relative dominantposition abuse.The paper describe the performance and harm of larger retailers’ relative dominant position abusein details by long-term practice and investigation and documentary analysis. It also makes some researchon others’ countries related laws and regulations in order to improve ours. It puts forward some suggestionson how to regulate the behavior better, looking forward to attracting the public’s attention. It is good for usto create a fair and harmonious competitive environment.