Legal Research On The Franchises System In Macao

This article carries on an analysis of franchising in Macao, pointing out that franchising brings about monopolies and other market problems in the system of ownership. The author thinks that only by refining the monopoly control system, fair market competition and thus an economic order can be maintained. The public enterprises play a very important role in the social economic life and the everyday life of citizens. However, the monopolization of the public enterprises has a very huge side effect on the social welfare and other market behaviour of enterprises. Monopolistic behaviour exists in market economy countries, but usually accompanied by anti-monopolistic rules. In Macao, as these rules are far from ideal, foreign experience should be taken into account. Various legal adjustments should be adopted to regulate the monopolies in Macao. To avoid irregular monopolistic behaviour, an anti-monopoly law, which sets clear scope of monopolistic behaviour in the market and also a supervision mechanism, should be enforced. Regulation of competition is included in the Commercial Code of Macao, however this part of the Law needs to be modified. In conclusion, Macao has to improve its franchising system in view of the institutional framework as well as the application of law. Firstly, a preliminary anti-monopolistic control system should be set up to enhance the related supervision job. Secondly, the Commercial Code of Macao and the anti-monopolistic rules in specific field complement each other in such a way that irregular market behaviour can be effectively controlled, thus achieving an external as well as internal surveillance.