Research On The Legal Regulations Concerning The Restriction Of Competition In Auto Industry

As the pillar of the national economy,Auto industry plays an important role in promotion of employment and industrial upgrade.In recent years,the domestic automobile industry experienced rapid development with automobile sales ranking the first in the world for 8 consecutive years.However,as the beneficiary of the high-speed growth of the auto industry,consumers are also suffering the losses incurred by restricted competition in auto industry where such restriction is mostly based on Anti-monopoly Law and Administration of Automobile Brand Sales Implementing Procedures.Administration of Automobile Brand Sales Implementing Procedures,promulgated in 2005,established the so-called Exclusive Dealer Franchise system which is believed to be the culprit for the restriction of competition that is frequently observed in auto industry.Moreover,the insufficient and imperfect competition in the auto industry resulted from a market structure featuring oligopoly is another factor that leads to restriction to competition.The anti-monopoly law enforcement department exhibited strong confidence and resolution in fighting against such competition restriction,and has imposed a series of huge fines to some of the auto companies,which somehow deterred the illegal behaviors.However,there are still some issues in the legislation and enforcement when it comes to anti-monopoly undertakings in automobile industry.For example,Administration of Automobile Brand Sales Implementing Procedures by MOFCOM is contradictory to Anti-monopoly Law;the geographical restriction is quite common in the reality as compared to only two kinds of vertical monopoly agreements introduced in the Article 14 of Anti-monopoly Law.Is this restriction lawful?Apparently the law needs to be further refined;certain cases may involve several behaviors that restrict competition,and each of the three anti-monopoly enforcement authority has its own jurisdiction,which may result in enforcement vacuum or overlapping.The long-standing and well-established EU Competition Law and US Anti-trust Law provides good institutional examples for reference regarding regulating the vertical competition restriction agreement and competition restriction behavior in auto parts industry.NDRC released the Guidance on Antitrust Measures in Auto Industry(Exposure Draft)made by Anti-monopoly Committee of the State Council in 2016.The Guidance offers detailed information concerning the market definition and exemption of vertical monopoly agreement etc.We should perfect the Exposure Draft and officially issue the Anti-monopoly Guidance for Automobile Industry so as to provide better legislative support to regulating competition restriction behaviors in auto industry.In terms of enforcement,we should improve the strength of our enforcement team and related authority,make the anti-monopoly law enforcement standardized and normalized,and push forward the private enforcement of anti-monopoly law.