REVIEW OF COMPETITION LAW ENFORCEMENT ON ABUSE OF DOMINANT/MONOPOLY POSITION IN VIETNAM Sample Clauses

REVIEW OF COMPETITION LAW ENFORCEMENT ON ABUSE OF DOMINANT/MONOPOLY POSITION IN VIETNAM. 1. Overview on the current regulations Regulations on abuse of dominant/monopoly position in Vietnam are shown in the main legislation: Competition Law, Decree 116/2005/ND-CP providing Detailed Regulations for Implementation of Some Articles of the Competition Law, Decree 120/2005/ND-CP on Sanctions of Acts in Violations of Competition Law. Unlike the legal system in countries like Japan, United States and EU, Vietnam uses per se illegal to assess whether an enterprise has dominant position, as well as acts considered as ―abuse‖ and forms handling violations. About the concept of enterprise with dominant position, Vietnam Competition Law distinguishes two cases: an enterprise with dominant position and a group of enterprises with dominant position. To determine the dominant position of enterprises/a group of enterprises, Vietnam Competition Law primarily bases on market share threshold. Specifically: Enterprises/A group of enterprises Market share threshold 1 Enterprise with dominant position 30% or more 2 A group of enterprises with dominant position 2 enterprises 50% or more 3 enterprises 65% or more 4 enterprises 75% or more Particularly for a single enterprise, Clause 1, Article 11 of Competition Law provides additional criteria ―the ability to restrict competition considerably‖ to determine the dominant position of the enterprise. The criteria ―the ability to restrict competition considerably‖ is prescribed relatively detailed in Article 22 of Decree 116/2005/ND-CP, which lists some bases for evaluation as: financial capability, technological capability, ownership or rights to industrial property subjects, distribution network of enterprises. However, Decree 116/2005/ND-CP did not give guidance on how to assess the ability of the enterprises to restrict competition considerably based on those factors. About the concept of the enterprise with monopoly position, Article 12 of Competition Law stipulates that ―an enterprise is considered to have monopoly position if there is no enterprise competing with goods and services of that enterprise in the relevant market‖. In the opinion of Vietnamese lawmakers, distinguishing between dominant enterprises and monopoly enterprise is necessary because there are some acts that only monopoly enterprise can perform or only monopoly enterprise can cause negative effects to the market and consumers. Regarding prohibitions, Vietnam Competition Law recognizes the existence of dominant, monopoly enterprises, however, prohi...
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