What is a Monopoly?

Monopoly (often translated as monopoly), an economic term, is generally divided into seller monopoly and buyer monopoly. Seller monopoly means that the sole seller faces competitive consumers in one or more markets through one or more stages; buyer monopoly (Monopsony) does the opposite. The theory infers that monopolists can adjust prices and output according to their own interests and needs in the market, but so far there is no exact case to provide support.

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Monopoly

The word monopoly comes from

It is generally believed that the basic reason for a monopoly is an obstacle to entry, that is, the monopolist's ability to remain the sole seller in its market is because other companies cannot enter the market and compete with it.

Monopoly means a few big

Monopoly and competition are inherently contradictory. Due to the lack of competitive pressure and development momentum, and the lack of strong external constraints and supervision mechanisms, the service quality of monopoly industries is often difficult to satisfy, often violating market rules and infringing on consumers' fair trading rights. And options. This is a rule. China and foreign countries are the same.

Establish basic antitrust principles

(1) Maintain the principle of fair competition. The state should formulate corresponding industrial development policies in all production and service areas except strategic areas where military and national security are of major importance to the national economy and people's livelihood, and fully introduce a fair competition mechanism to eliminate administrative monopoly in competition and the overall management of society Technology, quality, and efficiency have been comprehensively improved based on fair competition, and the healthy, sustainable, and rapid development of the socialist market economy can also be supported by good systems.

(2) Focus on pertinence and gradualness. Formulate laws and regulations that constrain and facilitate supervision of various operating behaviors such as industry and departmental operating systems and decision-making, procurement, services, pricing, and internal distribution; and use taxation to resolve non-risk and non-paying companies arising from monopoly privilege Income and personal income; the establishment of a highly authoritative and independent anti-monopoly law enforcement agency, which is responsible for determining the investigation and handling of illegal monopolies based on the phenomena reflected by authoritative social sentiment survey agencies and the news media; priority is given to solving the majority The hot and difficult issues concerning monopolies as reflected by the masses are subject to social supervision. Among them, standardized behavior is the key point, organizational construction is the key, gradual progress is the strategy, and fair supervision is the way. ^[7]

Monopolize and improve the organization

On the one hand, the Administration for Industry and Commerce is China's main antitrust enforcement agency. However, as the main body responsible for the supervision of the Chinese market, the administrative department of industry and commerce also undertakes many tasks such as enterprise registration management, trademark advertising management, and consumer rights protection. Moreover, the administrative department of industry and commerce often has difficulty in restricting its law enforcement powers due to legal authorization Effective investigation and punishment of administrative monopoly.

On the other hand, the existence of overlapping functions and multiple administrations among China s current market regulators often leads to inconsistent enforcement and repeated interventions. Therefore, relying on the Administration of Industry and Commerce to promote the implementation of specific antitrust practices undermines China s The impartiality, authority and unity of monopoly law enforcement. To this end, it is recommended that China learn from the antitrust experience of developed countries in the Western market economy, with fair and honest legal experts and economists as its core members, and establish an antitrust enforcement agency with high authority, independence and fairness.

It is necessary to give play to the advantages of China's socialist market economic system, implement strong macro-control, and implement compulsory intervention on the monolith, a stubborn stone. This will truly and completely cure China's economic "stubborn diseases" since reform and opening up.

Monopoly perfect legal system

Improve the "Antitrust Law", complete laws to encourage competition, and establish a fair market competition mechanism

Promote the "separation of government and enterprise" and "separation of government and supervision", actively introduce competition mechanisms, and boldly use private capital and foreign capital to form an open market system. ^[7]

Eliminating the administrative monopoly of the traditional system

It is necessary to closely integrate the reform of central and local government institutions, the transformation of functions, and the fight against corruption, and face up to administrative monopolies and use them as important legislative adjustment targets to promulgate relevant antitrust laws and regulations as early as possible; effectively protect China's economic growth and Activities, technological progress and competitiveness; adjust the approval authority and approval projects of governments at all levels to cut off the inherent causal relationship between industries, departments and local economies and the strengthening of administrative monopolies.