The Extraterritorial Application Of Antimonopoly Law And Measures For Its Improvement

Antimonopoly law is the sum of legal norms to adjust operators’ jointlyarrangement of the mutual competition relations through regulatingmonopoly and restricting competition. The main function of theanti-monopoly law in a market economy is to maintain the order of themarket competition, to protect the public interest of society and tocreate a competitive, fair market environment by prohibiting monopoly andother behaviors which restrict competition. Nowadays, economicglobalization has promoted the transnational operation and global tradeto become normal in the international civil and commercial exchanges.Admittedly, transnational economic activity can bring positive effectsto a country’s economy and competition, however, what shouldn’t be ignored is that some transnational economic entity, such as transnationalcorporations, if become the market power to restrict competition by itscompetitive advantage, can also cause great damage to a country’s economicorder, especially the order of market competition.In order to curb the monopoly power of the transnational corporations,maintain the effective competition in the domestic market, the marketeconomy countries unexceptionally apply the antimonopoly laws not onlyto the foreign enterprises and multinational corporations in the domesticmarket, but also to the restrictive competitions which generate in theforeign country but exert harmful influence on the domestic market. Thusthe system of extraterritorial application of antimonopoly law came intobeing. In the following part, the author intends to discuss this systemthrough its source of law, the relevant principles, the resultingconflicts and the policies for improvement.