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UPDATED: August-3-2008 NO. 32 AUG. 7, 2008
China's Anti-Monopoly Odyssey
A new law facilitates the detection of monopolistic activities, but the regulation's shortcomings will make its implementation difficult
By LAN XINZHEN

across the nation. In the era of globalization, the government has found it difficult to monitor transactions between multinationals, their domestic subsidiaries and their clients. Checking transnational monopolies should be listed as one of the major tasks of the departments in enforcing the Anti-Monopoly Law, he said. In these cases, the three departments would not be able to police transnational monopolies.

Despite the limitations of the three authorities, Mei iterated that the government must ensure that companies would not abuse or manipulate the new law. After the Anti-Monopoly Law takes effect, it would be very possible that some companies would try to manipulate it against their competitors, he added.

Mei pointed out that one of the law's stipulations would make it easier for individuals to report monopolistic practices by a company to increase the country's ability to prevent such behavior. Article 38 of the law prescribes that an individual or company has the right to report instances of monopolistic behavior to the three law enforcement departments, and that the bodies should not disclose the information publicly. But Mei pointed out that the provision could provide opportunities for companies to level false allegations against their rivals. For instance, local companies or governments might use the regulation to try to justify the local protectionism of certain businesses.

"The details of the law must be enacted soon to prevent the above-mentioned problems," Mei said in the article. "Otherwise, the enforcement of the Anti-Monopoly Law will encounter dilemmas."

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