The Chinese Anti-Monopoly Law
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The Chinese Anti-Monopoly Law

New Developments and Empirical Evidence

Edited by Michael Faure and Xinzhu Zhang

This book focuses on experiences with the Anti-Monopoly Law (AML) of 2007 in China. It uses carefully-chosen case studies to examine how the competition authorities in China discuss cases and how they use economic reasoning in their decision-making process.
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Chapter 8: Relevant product market definition of antitrust cases in the internet industry: taking the Baidu cases as examples

Tao Wu


Based on the technology of computers and communications, the Internet is one of the greatest inventions for human beings in the last century. In the past 10 years, the Internet and the number of people who use it has grown tremendously. In 2000, the number of worldwide Internet users was 360 million and by 31 March 2011, this figure was 2.09 billion. In China, by June 2011, there were 485 million Internet users and 318 million mobile Internet users. The rapid development of the Internet industry which is represented by E-commerce, Instant messaging, search engines and online games, brings new energy to economic growth and to human society. According to a report from Mc kinsey, the Internet contributed directly to between 0.8 percent to 6.3 percent of GDP in 2009, depending on country. Just like other new forms of technology or economies, the Internet is also a double-edged sword. As the web-based businesses bring us the convenience of life and economic prosperity, it also brings us legal and regulatory concerns, related to issues such as taxes, intellectual property and antitrust.

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