The theory and practice of antimonopoly regulation
Сочинение - Экономика
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ts place. An unscrupulous manufacturer changes his attitude, or being displaced from the market by competitors. Nothing threatens the power of the monopolist due to insurmountable barrier to the industry even in the long term. The market cannot solve the problem alone. Only the state can improve the situation in these circumstances, conducting an antitrust policy. It is not accidently that in our time there is no developed country where there was no special antitrust legislation and no special authority to oversee its implementation.main task of antitrust authorities is to promote the formation of market relations on the basis of competition and entrepreneurship, the protection of the interests of small business. This problem can be viewed as constructive. Its performance is inextricably linked to the other - state control enforcement of antitrust laws. Monitoring is carried out in different directions: prevention, limitation and suppression of monopolistic activity and unfair competition, prevention of undue concentration of capital. Methods for realization of these tasks provide a basis to call them repressive.on the communication competence of the antimonopoly body to its tasks there are several groups of powers antitrust authorities:
Powers, aimed at promoting competition and enterprise (for achieving the objectives of the creative nature);
Power related to state control and compliance with antitrust laws;
Authority for the application of measures and accountability for violators of legislation.authority to promote competition and entrepreneurship:. Analyzing and evaluation of the competitive environment in the commodity markets.. Determination of the dominant position of the entity.. The development of recommendations for the development of competition in the commodity markets.. Clarification on the application of antitrust laws.authority to exercise state control over compliance with antitrust laws:. Decision-making and issuing orders for violations of antitrust laws.. Anti-monopoly control of the auction.. Involvement of violators of antitrust laws to justice.. Right to antitrust authorities to claim in court.. The creation and maintenance of the Register of antitrust authorities.improvement of federal law plays a special role in shaping the legal framework of competitive market relations. In this connection it is necessary to accelerate the development and adoption of federal laws and other regulations on registration of legal entities, licensing, protection of competition in the financial markets, the competitive procedure for the distribution of orders for the supply of goods for state needs. A clear legal regulation of these matters at the federal level would significantly limit the violations of law and abuses of power, and will enable manufacturers to effectively defend their rights and interests.
.2 Antitrust regulation of monopolies
high efficiency of natural monopolies makes their crushing absolutely unacceptable. This does not mean that the government may refrain from regulation of natural monopolies, because their uncontrolled activity may harm the economy. These structures are trying to solve their problems by raising tariffs and prices. The implications for the countrys economy are the most destructive. Production costs in other areas increases, defaults grow, interregional connections ties are paralyzed. The natural character of a monopoly position creates an opportunity for effective work, but does not guarantee that these opportunities will be realized in practice. Basic way to tackle the negative aspects of natural monopolies is the state control after pricing in natural monopoly and after the volume of the production. Price regulation of natural monopolies requires mandatory binding maximum value prices for the products of a monopolist. In this case the consequences of this regulatory action are directly dependent on the particular level at which prices are fixed. Another difficult problem related to natural monopoly refers to their status: whether or not these companies should be public or private? The origins of this problem are connected to the fact that natural monopolies are very specific subject of the economy, which has never operated on a purely market principles. If the natural monopoly excludes competition, if the consumer is absolutely devoid of choice, though many other mechanisms of functioning of the market are broken, is not it better to manage the natural monopolies, not as private but as state-owned enterprises? Traditional arguments in favor of nationalization are connected to the fact that for the state enterprise it is easier to carry out government policies on prices, tariffs, production volumes. Public ownership eliminates monopolistic abuse in order to enrich the owners. Arguments against nationalization fears are associated with lowering the efficiency of natural monopoly. With no need to focus on commercial success, the director of the firm becomes a public official. He is willing to carry out any instructions just to satisfy the wishes of his superiors. The risk of corruption increases. There are strong arguments on both sides. Countries with a statist mentality prefer nationalization of natural monopolies. Countries with a strong individualistic tradition vice versa are leaning toward private property.natural monopolies, artificial monopoly is formed in those industries where a single producer does not have high efficiency compared to several competing firms. The establishment of monopoly type of market is not inevitable for this industry, although in practice it may occur if the monopolist can eliminate future competitors. The main goal of antitrust policy is to prevent monopolistic abuses. Considering natural monopolies these goals are achieved through direct government intervention in the activities, in particular, forced by setting prices. In the case of artificial monopoly regulation is the main focus of opposition to the formation of monopolies, and sometimes the destruction of those already formed. To do this, the state uses a wide range of sanctions: preventive measures, fines for improper behavior on the market, the direct de-monopolization. The basis for the activation of antitrust policy is the existence of any of the two main signs of monopolization of the market: the concentration of a very large market shares in the hands of one company, or interweaving of a leading company with its competitors. Determination of the degree of concentration in the industry is focused on the 3 factors rate of major companies: the size of turnover, number of employees and amount of capital. Share of turnover of the company shows what part of the total supply of goods the firm concentrates.implementation of antitrust action by the state in the tactical plan is possible in two ways. First, the anti-monopoly measures should be preceded by a significant part of the transition to market relations. You must first create a system of measures to counter monopolies (the creation of antitrust laws, the dismantling of major groups, primary de-monopolization). But there are disadvantages in this option. They are related to the fact that instead of one monopolistic firm other arise, that does not lead to the development of competition. Second, the anti-monopoly action shall be taken simultaneously with the transition to market relations in the framework of these relations. Synchronicity of these processes contributes more to de-monopolization of the economy, the development of competition. In this regard, the entire set of measures for economic reform should be given anti-monopoly orientation, which requires examination of antitrust decisions. Antitrust policy is modifying over time. At a certain stage of development some areas of antitrust policy takes priority, but with the change of the situation the emphasis also changes. However, some form of monopoly modern economics and the law is still considering normal and therefore do not pursue. First of all, that firm is not subject to punishment that has managed to grab significant market share due to:
Creation of a unique product;
Effective marketing;
Designing and developing new technology will significantly reduce costs and on this basis, to sell goods at lower prices without losing revenue.can say that antitrust policy and antitrust law are not intended to prohibit or eliminate monopolistic entities. The society had the understanding that the monopoly profits as a growth factor cannot be destroyed. So the real task of antitrust policy is to put up the monopoly of state control, to exclude the possibility of abuse of monopoly power. Karl Marx in the middle of last century came to the conclusion that the emergence of monopolies requires government intervention. The main objective of this intervention is to protect and preserve free competition, which threaten the monopolistic tendencies. Specifically, we can formulate such goals: limiting monopolies, support and promote small business, consumer protection. There are two main forms of struggle against monopolies:
Preventing the creation of monopolies;
The restriction of the use of monopoly power.is carried out by market liberalization. This is achieved by flexible maneuvering customs treatment (reduction of customs duties, the abolition of quotas, the elimination of other barriers to entry to the domestic market for foreign products), improving the investment climate for foreign investors, supporting small businesses, etc. The state control is important in the process of concentration of capital, financial penalties for violations of antitrust laws. As one of the tools used by antitrust policy is used a prior approval of antitrust authorities in the establishment, reorganization, liquidation, merger of companies, the acquisition of shares (stakes) in the