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Calls for single anti-monopoly agency

By Wu Jiao (China Daily)
Updated: 2007-12-14 09:59

A unified and independent agency is needed to ensure the successful implementation of the Anti-Monopoly Law, which is scheduled to come into effect next August, experts have said.

The law, adopted by the Standing Committee of the National People's Congress on August 30, after 13 years of revisions, proposes a special Anti-Monopoly Commission be set up under the State Council to organize, coordinate and guide anti-monopoly work.

The law will include targeting abuse of market-dominant positions and administrative power that excludes or restricts competition.

The central government will be able to authorize certain agencies in anti-monopoly enforcement, the law states, without specifying which agencies they are.

Speaking at the International Symposium on Anti-monopoly Enforcement yesterday in Beijing, Wang Jiafu, an expert in law at the Chinese Academy of Social Sciences, said: "The situation (of several ministries participating in the law enforcement) will be loose there should be a unified, effective and authoritative agency to ensure maximum effect."

He said the ministry responsible for anti-monopoly law enforcement should be a "neutral" one that has no interests or involvement with businesses.

"It should also have much experience in handling unfair competition and anti-monopoly practices," he said.

Currently, at least three ministries, including the National Development and Reform Commission, the State Administration of Industry and Commerce and Ministry of Commerce, are involved in handling monopolies disputes.

Wang Xiaoye, a law expert who was involved in drafting the Anti-Monopoly Law, said: "A powerful, unified agency is needed to enforce the law against powerful government organs that might abuse their administrative power to ensure State enterprises have a monopoly in communications and power sectors."

Foreign countries have adopted various models for law enforcement, with either parallel anti-monopoly ministries or a single and unified one to handle the issue, he said.

A unified agency will be more swift and effective in enforcement, but those models involving more than one agency might cover a wider range of the market, he said.


(For more biz stories, please visit Industry Updates)

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