What are the main constraints for the effective enforcement of the Essay - 1

What are the main constraints for the effective enforcement of the Antimonopoly Law in China - Essay Example The Antimonopoly law began operating in early August 2008, making China a vital competition law jurisdiction, for international and domestic businesses, or companies with running activities in China’s territory. Its three broad rules are based on prohibiting abuse of dominant market positions and restrictive agreements, mergers rules preventing mergers or joint ventures that restrict competition as well as control M&A activities, and rules forbidding abuse of administrative powers that end up in competition restriction (Rose, 2012). The application of the law is viewed differently among the people of China. Some think it applies to all businesses or organizations in dealings of providing goods and services, while others think the complexity of the law has something to enhance leniency in state owned enterprises. However, even after its initiation, several factors have dominated to restrict full enforcement of the law. They include limited transparency, concentration, influence from government involvement, outdated economic planning, unreliable market infrastructure, unnecessary enforcement of law, insider control, and general resistance. So far, the Anti Monopoly Law (AML) is being enforced by three bodies; MOFCOM, NDRC and SAIC, to ensure fair competition, safeguard social public and consumer interest, boost economic efficiency, and restrain monopolistic behavior. The enforcement agencies continue to experience challenges and problems in the law enforcement practice, limiting effective application and acceptance of the AML by the people. Over the years, the enforcement agencies have been handling many cases to do with monopolistic agreements, merger control, and price and non price related cases for the companies and businesses operating and showing interest to practice within China. The NDRC and SAIC have faced accusations