Wednesday, February 11, 2009
Posted by D. Daniel Sokol
Adrien Emch of Sidley asks about Abuse of Dominance in China: A Paradigmatic Shift?
ABSTRACT: The Anti-Monopoly Law (AML) represents a significant step in China's march towards a market economy. The concept of a "dominant market position" (DMP) in the AML exemplifies the move towards market economy principles. In the past, the DMP concept was largely absent in Chinese antitrust law. The rules on single-firm conduct in principle applied to all companies -whether or not they were in a DMP. Post-AML, the DMP concept aims to ensure that only companies with market power are subject to the rules on single-firm conduct. Essentially, the DMP concept works as a screen in the AML's attempt to prevent companies from abusing their market power vis-a-vis customers or competitors.
Nonetheless, while the DMP concept appears now firmly established, its introduction into Chinese antitrust law has been a gradual process, and it is not clear whether the AML's adherence to the DMP principle is indeed complete and unequivocal.