Verifications and regulations on monopoly predatory pricing

• Main Authors: TSAI,CHIA-CHI, 蔡家齊
• Other Authors: CHEN,JUNG-LUNG
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/38358784102410526747

碩士 === 輔仁大學 === 法律學系碩士在職專班 === 104 === Monopoly predatory pricing is a company’s abusive behavior using its dominant position. This paper focuses on predatory pricing, monopoly and the monopoly in Taiwan. In a narrow sense, predatory pricing is the intent of driving out other competitors with the prices lower than the cost, and hope to retrieve the lost by raising the price. In a broad sense, predatory pricing includes deterring potential competition with the low price. Oligopoly markets are markets dominated by one firm or a small number of suppliers. Different countries have different definitions for oligopoly. In Taiwan, the term "Monopolistic Enterprise" means any enterprise that faces no competition or has a dominant position to enable it to exclude competition in the relevant market. Two or more enterprises shall be deemed monopolistic enterprises if they do not in fact engage in price competition with each other and them as a whole have the same status as the Monopolistic Enterprise defined above. Monopoly has no specification and definition in the United States, it has only mentioned market shares and entry barriers are the key factors for determining “market monopoly”. In Japan, the verification of monopoly is based on sales and market share. In Germany, the definition of market power is that there is no competitor, not in real competition and has superior market position compared to its competitor. These countries definitions are all included in the Restraints of Competitions Chapter of Taiwan’s Fair Trade Law, but the scopes are broader. In Taiwan, Fair Trade Law Chapter II Restraints of Competition Article 7, the term "Monopolistic Enterprise" as used in this Act means any enterprise that faces no competition or has a dominant position to enable it to exclude competition in the relevant market. Two or more enterprises shall be deemed monopolistic enterprises if they do not in fact engage in price competition with each other and them as a whole have the same status as the enterprise defined in the preceding paragraph. To fulfill Taiwan's current economic environment, one of the choices is to reference Germany’s dominant market position as defined in Article 18 of Competition Prevention Law, article 18, which is broader than the Monopoly Standards defined in Taiwan’s Fair Trade Law.