The Application Of Competition Policy In Network Public Utilities

Among all the institutional systems of a market economy country, the competition policy plays a key role. At the same time, the importance of competition policy can never be denied in a country of which the economy is developing into a competitive market structure. As for the Network Public Utilities, the intervention of competition policy will promote market competition to its greatest extent, and assist with the development of these industries.With regards to the promotion of competition policy in the Network Public Utilities, the specific characteristics of these industries should be taken into consideration. In addition, the existing government regulatory systems will exert a deep influence on the promotion of competition policy and the function of competition authorities. Therefore, regarding the promotion of competition policy in specific industries, this thesis will also emphasize the method to remain the coordination of competition policy and existing government regulatory systems, and the way to deal with the relationship between competition authorities and regulators. Furthermore, special attention will be paid to state-owned enterprises in the Network Public Utilities, as the application of competition policy on these state-owned enterprises will be rather special and complicated.This thesis consists of five parts:Introduction includes an outline of the structure and main content of this thesis and it covers the background of this thesis, an analysis of existing academic achievements, the methods of research for this thesis. The innovation and what can be further improved for the thesis are also mentioned in this part.The First Chapter is an analysis of the characteristics of Network Public Utilities. In order to establish a sound basis for this thesis, relative economic principles are used in analyzing the market structure of Network Public Utilities. The method of historical analysis and comparative analysis are used in concluding the Network Public Utilities’market structures: vertical integration model, vertical segment model and networks competition model. Considering the characteristics of the Network Public Utilities and the current situations in China, the railroad industry, the electricity industry and the telecommunication industry are chosen as the object for research in accordance with the three models above, which making the analysis of this thesis more specific. In the final part of chapter one, there will be an analysis of the government regulatory systems’ influence on the market structure, which is often used as a tool of fixing the market failure. In order to promote competition and create environment for the change of market structure, the government regulatory systems should be gradually reduced. If the actions led by government regulatory systems actually restrict competition, these should be prohibited.In the Second Chapter, the basic issues of government regulation and competition policy, and the relationship between them, will be analyzed. Through the introspection of the reasons of government regulation, it reflects the failure of government regulation in some circumstances and some improper government regulations which restrict competition. All these defects should be gradually fixed under the background of reduction and the rebuild of the current government regulation. Therefore, the rational government regulation shall be established. Some general issues of competition policy are analyzed. The discussions of competition policy and competition law are made in both broad sense and narrow sense. The competition policy in a broad sense includes its function in the guidance of competition law culture and the promotion of competition. In general, the competition policy in a broad sense can exert influence on an economy entity’s extent of competition and openness through the promotion of ideas and the participation of decision making process. From a microcosmic perspective, it can exert influence on the market through changing the industries’competition structure. There is a new approach in stating the relationship between competition policy and industry policy. The competition policy in a narrow sense means the effective application of competition law. In addition, some significant, unique, and original statements are made on the position and objective of Anti-monopoly Law of the People’s Republic of China, Anti-monopoly Law’s legislative purpose, and the relationship between Anti-monopoly Law and industry regulations. This part also covers the possible method to coordinate the regulators and the competition authorities. There will be a detailed analysis of these two authorities and the distribution of powers and duties thereof. The analysis will serve as the basis of next chapter.The Third Chapter is the analysis of the competition law’s application in vertical integration model, vertical segment model and networks competition model. To protect the competition in the market and to guarantee the prosperous development of economy, it is necessary to regulate the possible competition-restricting actions and illegal competitions by the competition law. Finally, some comments are made on the monopoly and competition of state-owned enterprises in the Network Public Utilities under the current environment.In the Conclusion, some conclusions concerning the application of competition law in the network public Utilities are made based on the analysis above.