Chapter 7: The impacts of WTO competition policy negotiation in China
The establishment of the WTO and the substantial mutual reductions of tariffs between its members mark a big step towards liberalization of world trade. However, liberalization of world trade is far from having been achieved. In international trade, besides governmental tariff and non-tariff barriers many anti-competition practices among enterprises exist, such as price-fixing cartels, abuse of dominant positions, and excessive large-scale mergers leading to excessive economic concentrations (for example, the proposed merger of the US firms General Electric and Honeywell in 2000 which was prohibited by the European Community in the summer of 2001). With economic globalization, especially with the ever-increasing number of mega-mergers, the competition laws of various countries are confronted with serious challenges. On the one hand, it is necessary for the competition authority in each state to take into account the reality of economic globalization, especially the expansion of the market; on the other, in order to reduce and avoid the substantial negative impact on international competition, in particular by mega-mergers, the competition authorities should strengthen their cooperation and coordination, including the field of legal procedures. Up to now, in cases involving international cartels or mega-mergers with transnational impact, the US has usually exercised its jurisdiction according to the ‘effects doctrine’, which was established by the US Federal Court in the Al-coa case in 1945.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.