Application Of Anti-monopoly Law In Natural Monopoly Industry

Based on the elaboration and analysis of the theory of natural monopoly andanti-monopoly law theory, this paper reveals the basic of the application of theanti-monopoly law in the natural monopoly industry and principles of “generalapplicability, exemption exception”,“cost effectiveness” and “dynamic”. This paperanalyses the characteristics and differences and the coordination model between theanti-monopoly law and the sector-specific regulation and clarifies that the reasonablecoordination model between the anti-monopoly law and the sector-specific regulationfor specific industries or specific type of restrictive competition should be based onthe reality of economic and technology. On the basic of theoretical analysis, this paperfinally takes the postal industry as an example to analyze the specific application ofthe anti-monopoly law and clarifies that the contents and methods should be adoptedaccording to the strength of the natural monopoly of the different business area in thepostal industry.This paper is divided into4parts:First part: The summarization of the natural monopoly industry. Starting fromthe definition and development of the natural monopoly theory of economics，thischapter analyzes the impact of natural monopoly theory on the application of theanti-monopoly law in the natural monopoly industry. The traditional anti-monopolylaw theory based on the economics knowledge of natural monopoly placed the natural monopoly industry as a whole into the exemption scope of anti-monopoly law. Butwith the development of natural monopoly theory, the traditional natural monopolyindustry can no longer be considered to have natural monopoly, or its internal issubdivided into natural monopoly business and non-natural monopoly business,namely there is monopoly business boundary in the natural monopoly industry.Second part: The basic and principles of the application of the anti-monopolylaw in the natural monopoly industry. With the development of the natural monopolytheory and the anti-monopoly law theory, there have been many disadvantages arisingfrom exempting natural monopoly industry as a whole from application ofanti-monopoly law which has detached from the reality of economy and technologyand cannot meet the pursuit of the whole social benefits of the anti-monopoly lawtheory or the protection of consumer rights. The natural monopoly industry has lostthe basic of exempting natural monopoly industry as a whole from application ofanti-monopoly law and should be wholly or partly placed into the application scope ofthe anti-monopoly law. And this chapter reveals the principles of “generalapplicability, exemption exception”,“cost effectiveness” and “dynamic”.Third part: The coordination between the anti-monopoly law and thesector-specific regulation in the natural industry. This chapter analyses thecharacteristics and differences and the coordination model between theanti-monopoly law and the sector-specific regulation and clarifies that the reasonablecoordination model between the anti-monopoly law and the sector-specificregulation for specific industries or specific type of restrictive competition should bebased on the reality of economic and technology. At present, the abuse of dominantposition and the restrictive competition agreement should be generally regulated bythe anti-monopoly law and the sector-specific regulation should be appliedcomplementally. In particular cases, the sector-specific regulation should be appliedexclusively. But the concentration of enterprises should be totally regulated by theanti-monopoly law. Along with the development of economy and technology, whenthe natural industry has enough competitive and the sector-specific regulationbecomes to be unnecessary, the anti-monopoly law will be completely alonecompetent competition regulation in the industry and the sector-specific regulationwill eventually exit to regulate all restrictive competition cases.Fourth part: The specific application of the anti-monopoly law in the postalindustry. On the basic of theoretical analysis, this chapter finally takes the postal industry as an example to analyze the specific application of the anti-monopoly lawand clarifies that the contents and methods should be adopted according to thestrength of the natural monopoly of the different business area in the postal industry：Firstly, the universal postal service industry should use the anti-monopoly modelof “structure exemption, behavior regulation”. The abuse of dominant position and therestrictive competition agreement should be generally regulated by the anti-monopolylaw and the sector-specific regulation should be applied complementally. But theconcentration of enterprises should be totally regulated by the anti-monopoly law.Secondly, the monopoly structure and behavior of the competitive business ofthe postal industry should be regulated together. The restrictive competition should betotally regulated by the anti-monopoly law. Through system construction, thesector-specific regulation maintenances the competitive structure and introduces morecompetition, eliminates the offset or hinder effect by monopoly behavior to the marketmechanism of free competition, and promotes further competition.Finally, the special business of the postal industry should be exempted from theapplication of the anti-monopoly law. But the anti-competitive behavior should beregulated strictly by the industry regulator.