A Study On Antitrust Regulation On The Auto Spare Parts Aftermarket In China

This paper discusses and analyzes the main monopoly problems existing in China's auto spare parts aftermarket and the existing problems of antitrust regulation.On the basis of foreign experience and China's reality,it further explores the feasible way to regulate the antitrust problems in China's auto spare parts aftermarket.The first part of this paper investigates the situation of China's auto spare parts aftermarket and the situation of monopoly performances.It is easy to find that in the current aftermarket,there are restrictions on the competition of price,distribution channels and the market access.In the further analysis of their performance,causes and effects,it is found that the reason behind them are price-limiting behavior,exclusive trading behavior and other manifold aspects like design patent protection and recognition ability of homogeneous parts.It is necessary to regulate these monopoly behaviors and problems as they have reduced the consumer welfare,led to market failure and damaged the industry.After proposing the requirements of antitrust regulation and promoting competition,the second part of this paper analyzes the current regulation in China and its problems.Overall,China has ruled on the price-limiting behavior and exclusive trading behavior and implemented these rules in the practice.However,there are still many problems.Firstly,the recognition of price-limiting behavior is unclear.Secondly,although there are rules concerning the exclusive trading behavior,they are still difficult to apply and be proved which will directly affect its implementation and effectiveness.Thirdly,there are loopholes to regulate the restrictions on the market access where the protection of design patent need to be limited and the recognition ability of homogeneous parts need to be adjusted.Fourthly,Measures for the Implementation of the Administration of Automobile Brand Sales adversely enhance the competition restrictions.Fifthly,the existing implementation is not extensive and need to be enhanced.On the basis of main problems on anti-monopoly regulation,the third part of this paper studies on foreign experience,including the experience in the EU,USA and Australia.Firstly,in the EU,it focus on the regulation of vertical restrictions to regulate price-limiting behavior and exclusive trading behavior.It details the rules and establishes the idea of “block and exemption.” Secondly,the EU provides guidance on the recognition of the relevant market and market dominance.Thirdly,the EU and Australia eliminates the protection of design patent in this specific aftermarket and USA discusses its limitation.Lastly,the EU and USA enforce the rules by the means of measures.Combining with foreign experience and China's reality,the last part of this paper put forward suggestions to improve the anti-monopoly regulation.Firstly,to solve the problems on the recognition of price-limiting behavior,the behavior and the corresponding result need to be clear.Secondly,there is a need to develop anti-monopoly rules to regulate the exclusive trading behavior.This paper deliberate the details suggestions on the basis of newly Antitrust Guidelines on the Automotive Industry(Consultation Paper).Thirdly,it is necessary to limit he protection of some design patents and improve the recognition ability of homogeneous parts in this specific aftermarket to reduce their negative effects on the competition.Lastly,the measure above need to be implemented to ensure the effectiveness of anti-monopoly regulation.Overall,China's auto spare parts aftermarket need to be regulate all-round to ensure the competition and development of the market which are directly related to the development of the industry and people's livelihood.