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Identification and exemption on the vertical monopoly agreement

Author: ChenLing
Tutor: ShiJianSan
School: Shanghai Academy of Social Sciences
Course: Civil and Commercial Law
Keywords: monopoly agreement competition effects added value brand culture principle in terms of reasonableness
CLC: D922.294
Type: Master's thesis
Year: 2011
Downloads: 318
Quote: 0
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Abstract


Vertical monopoly agreement is one type of the two monopoly agreements. When comparing with horizontal monopoly agreement, its impact on competition is more indirect, which means it will cause less market and public concern. Vertical monopoly agreement has positive and negative effects. To judge whether a sole vertical monopoly agreement should be prohibited; reasonable analysis is required to apply to the purpose of its establishment and detailed market share. This helps to determine the possibility of the emergence about further competition and protect consumers’ rights as well. From US and EUs’ experience, vertical price monopoly agreement can add value and benefit to the enhancement of brand culture include certain legitimacy.The purpose of paper is to prove that principle in terms of reasonableness should be applicable to all the kinds of vertical monopoly agreement. The recognition and immunity of vertical price monopoly agreement are unique, because they will cause less harm comparing with horizontal monopoly agreement. Its positive significance has been recognized by scholars. But these kinds of agreements not only have common passive factor, but also have the negative effect that make vendor get the excess return and deprive the elective choice of the consumer. In order to realize the high efficient management in market and max profit of consumer, it’s very important to hold and observe the standard of these kinds of agreements. The recognition of vertical price monopoly agreement in China should adopt principle in terms of reasonableness and demonstrate relevant implementation regarding exempt conditions and procedures.

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