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The dual function of regulation of industry associations in market competition -- Comment on "anti-monopoly law" restrictions on competition of Trade Association

Author: WuBiLin From: www.yourpaper.net Posted: 2010-05-30 14:05:36 Read:
Keywords: the   Industry Association; market competition   restriction of competition; anti-monopoly law
Abstract: the association is a "double-edged sword" of market competition, has the positive and the negative two aspects function.On the one hand, trade association to assist the government in formulating competition policy, maintain the order of competition, improve the market competitiveness of enterprises; on the other hand, industry associations to avoid fierce market competition, always try to weaken and eliminate competition, resulting in restrictive competition behavior.The promulgation of the new "people's Republic of China anti-monopoly law" increased provisions on Trade Association restricting competition, become a legal system for regulating trade association restricting competition the most effective.
Industry Association is a non-profit organization composed of the competitors in the same industry, its establishment and operation aims to provide public services for its members, not for profit purposes."Industry Association as a special subject to market competition is a" double-edged sword ", it can influence the positive and the negative two aspects, can become a maintenance of modern market competition tool, also can become the barriers of market competition.In 2007 August promulgated the "people's Republic of China anti-monopoly law" (hereinafter referred to as the "anti-monopoly law") specifically increased provisions on Trade Association restricting competition, become a legal system for regulating trade association restricting competition the most effective.Legal regulation by competition restrictions on Trade Association strong, can reduce and eliminate the negative impact of industry associations in market competition.As the industry association itself, should draw on the advantages and avoid disadvantages, weaknesses, and give better play to the positive function of market competition.
The positive function of , a trade association for market competition
Trade association is organized jointly with the competitor's, it is in the maintenance of the interests of the members of the association and to achieve maximum benefits to industry, in the idea there is some closer to the public rather than private value idea, therefore, industry associations can promote and maintain a free, fair competition.
(a) industry association intermediary function formulation and implementation of competition policy.Industry Association as a social intermediary organization plays a role of bridge and link in between government and enterprises.Industry Association is a trade interests represented, with a variety of communication channels and the rapid reaction mechanism with the government and other public governance subject.Industry associations often represent interests of the members to join the government to formulate industry development planning, industrial policy and laws and regulations and other activities, can be members of the opinions and requests together reflect to the government, through the proposed some suggestions to influence the government to formulate or amend the relevant policies and laws.
In addition, industry associations can make government policies and regulations and on issues related to the processing opinion timely convey to its members, so that policies and regulations should be implemented and executed as soon as possible.
(two) the industry associations and self-discipline function to maintain the market competition order.The market mechanism is the basic means of rational allocation of social resources, but the market in pursuit of "profit maximization", operators in the process of profit will inevitably lead to short-sighted and harm the public interests, destroyed the normal order of market competition.Therefore, the market is not omnipotent, it is difficult to overcome their own shortcomings in many aspects, there is the problem of "market failure".The government's intervention in economic life to solve the problem of market mechanism, to a large extent, when a market failure, the inherent defects of rent-seeking behavior and asymmetric information will lead to "government failure" consequences.Lack of industry association self-discipline function can make up for the above two kinds of adjustment mechanism.Industry associations through the development of industry, the establishment of industry internal rules of internal punishment mechanism to regulate and restrain the behavior of enterprise.Through industry self-regulation in the industry formed a spontaneous order, become the powerful supplement to construct the national law of public order, is conducive to maintaining the order of market competition.
(three) play the role of industry associations many function can improve the market competitiveness of enterprises.The service function of profession association is the most basic functions, including providing information services for members of the association, exhibitions, providing education and training, research and development, services, trade associations to play the service function can improve the market competitiveness of enterprises.Such as, R & D service function, in the current fierce competition in the market, by the development of industry associations and organizations is important form of modern society, technology progress, because for some technology development, the development of a single enterprise cost is too high, the risk is too high, and set all the enterprise power often have cost savings, dispersion risk.In addition, the industry associations have coordination function and represents a function.In today's increasingly competitive international market environment, industry associations play a coordinating function and represents a function to strengthen the international competitiveness of enterprises, which mainly manifests for the industry associations play in the role of anti-dumping.In order to avoid the domestic enterprises to adopt the low price strategy to enter the international market, competing suppression of prices, which was the importing country's anti-dumping or countervailing litigation, industry associations through the coordination of the industry product prices, carried out to determine the minimum price work, reasonable price so that we can protect domestic products in the international market, and can avoid. Dumping.When the export products and export enterprises by the importing country anti-dumping lawsuits, as individual enterprise is very limited powers, the whole industry situation is difficult to understand and grasp, often to the anti-dumping.In this case, industry associations can play its unique features to help enterprises to.When the imported products constitute dumping, injury to the domestic industry, industry associations can also be used as a representative of the industry operators to foreign products anti-dumping litigation, so as to maintain the equal status of enterprises in international competition.
two, trade association's negative function on competition in the market of
Industry associations to avoid fierce market competition, always try to weaken and eliminate competition.With the increasingly fierce market competition, the negative function of profession association -- the joint restrict competition also unexpected, brings the serious influence to the healthy development of the market economy.Joint restrict competition called "price cartel (Alliance)", is the negative force of economic mechanism damage market, it refers to the competition between the enterprises in the planning of Industry Association, through mutual agreement promising not to carry out competition behavior.Pricing behavior and the change range of the same, the purpose is to let consumers face a market without competition.The result is the competition between competitors disappeared, the interests of consumers reduced, motive force of market economy -- competition creativity or resource allocation efficiency is impossible.
In early 1776, the father of modern economics, Adam Simy pointed out that pierce to the heart of the matter in his masterpiece "the wealth of nations": "as long as it is the same industry people together, even if it's just entertainment and recreation, party is a conspiracy against the public or raise the price strategy and the end."Industry Association is a natural place for its members to discuss the price, members of the enterprise or industry associations in direct agreed in the prices of some commodities, information or the use of Communication Industry Association, to actually control the price of purpose.On the other hand, in the form of price cartel has been the case, industry associations can make use of the right to punish, punish members who did not comply cartel agreement, to ensure that the cartel stability.
Trade Association restricting competition behavior compared with general enterprise alliance is more subtle, more harm.Industry associations as an interest group, is the representative of the interests of industry, so the industry association in the face of social interests, the interests of consumers and industry conflicts of interest when, usually industry interest in the first place.When the industry enterprises in the fierce market competition, industry associations will naturally transformed its function, its make agreement or common decision behavior will naturally close to the joint behavior, ability to coordinate the organization of its inherent will translate into common ability, this is bound to lead to limit competition, harm the interests of society and consumers interest.
three, "anti-monopoly law" on Trade Association restricting competition behavior regulation
In the areas of regulation from the restriction of competition on the whole industry association of China promulgated a new "anti-monopoly law".This determines the anti-monopoly law the regulation is necessary, and to take into account the industry associations and self-discipline and the maintenance of competition has special characteristics.
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