Onlookers antitrust case: immortal war has nothing to do with the consumer
Xinhuanet, Beijing, November 11 (reporters Liu Ju and)-Chinese anti-monopoly law after the sword of Damocles hanging in silence for three years, unexpectedly falls to China Telecom and China Unicom on its head. National development and Reform Commission, antitrust and price supervision and Inspection Bureau Deputy Director Li Qing 9th CCTV “News 30″ accepted an exclusive interview with CCTV said after the Council received a report in the first half of this year, as soon as China Telecom, China Unicom, arrested for investigating price fixing case.
Key features of the survey is, China Telecom, China Unicom broadband access and internetwork settlement area is the use of their own has a dominant market position to hinder or interfere with other acts such as operators entering the market.
Qing Li, China Telecom, whose Internet access revenue about 50 billion a year, about 30 billion a year for China Unicom. “If after a case trial, facts established qualitative accurate, probably in the 1% fine-then punishment range. ”
News came out, shocked the industry, lively public opinion. There was a loud applause, which is the “Gospel in the world of the Internet”. Some say it is a carefully planned conspiracy, is under the system of departmental interests competing for “farce”.
After extensive interviews with Xinhua, in a bid to pure technology to restore the essence of this event for readers.
A is still in progress in the antitrust investigation
According to the information held by a Xinhua reporter, in late April this year, national development and Reform Commission price supervision and Inspection Department (later renamed the price and Antimonopoly Council of supervision and inspection) to China Telecom and China Unicom has issued a notice of investigation. In June, the preliminary findings inform the development and Reform Commission: dominance has identified the two companies in the relevant market, acts of alleged abuse of a dominant market position, and is intended as wired broadband access 1% per cent of overall income to fine. Each of the two companies subsequently submitted his defense of feedback submissions.
On October 17, the development and Reform Commission relating to seek the views of State Council Legislative Affairs Office, the Supreme People’s Court and the Ministry. The meeting, the parties divided larger, more concentrated view is that it is an event, in the case of evidence is not sufficient, need to be cautious. Development and Reform Commission said at the meeting, will be on the programme in consultation with the National Capital Commission and relevant ministries such as Ministry of comments submitted to the State Council.
At noon on November 9, prior to the development and Reform Commission, did not seek the views of relevant departments and enterprises, Li Qing by CCTV reveal antitrust investigation.
It is understood that the entire investigation process is kept strictly confidential, relevant staff or even requires signature confirmation on the conversations recorded, “just as police ask do. “As a result, reports came out, surprised at relevant ministries in addition to, a little embarrassed. And overseas-listed China Telecom and China Unicom share price experienced a dramatic slump and a series of strange changes, the current international capital markets cannot be ruled out sharks smell blood and killing to the possibility of.
According to China’s antitrust law 44th came into effect in 2008, “antitrust law enforcement agencies for investigation into alleged monopolistic behavior verification, opinion constitutes a monopoly, it shall make decisions, and to the public. ”
In response, the China Consumer Association legal adviser Qiu Baochang believes that development and Reform Commission, in the findings is not that case, posted on the powerful in the country’s media practice in this matter “less serious”, were arrested for breach of the relevant provisions of the antitrust laws. “Monopoly and to speak with facts and evidence. In the absence of that enterprise monopoly until the official conclusion, should not be published, or unfair to the enterprise, impact on society is difficult to reverse. Only in both entities and procedures for legal compliance, realistic, enterprises can complain, the State had the credibility. ”
Chart: number of China Telecom and China Unicom users. Xinhua reporter FENG Qi prepared
Nothing to do with ordinary consumers “immortals battle”
The development and Reform Commission antitrust investigation is targeted to Internet service provider (ISP) dedicated line access market monopoly. In other words, no matter how the development and Reform Commission antitrust investigation eventually concluded, has no connection with broadband prices of ordinary users.
However “the telecommunication monopoly” with the words still resonate with greatly raised the public.
Development and Reform Commission, believes that has been largely identified the two companies on the Internet access market occupies a total of two-thirds per cent of market share, certainly has a dominant position, the two companies a dominant market position of the competitors on the a premium price, suspected price discrimination exists. If established, it may be punishable by fines of up to billions of dollars.
In response, the people newspaper Chief Editor of posts and telecommunications Wu Suoning: “cable broadband market share of more than two-thirds alleged monopoly, such a discussion makes no sense, because the world telecommunications industry, are the structures, Japan NTT 80%, United Kingdom high, United States is no exception, which is determined by the access networks of the mass production of nature itself. ”
Wu Suoning said, because the line laying costly, coupled with full coverage, double backup, various circuits such as multi-line maintenance measures, as well as the commitment to universal service, and international are settled between cable operators and other factors, broadband network is bound to need to focus on a few, qualified for major companies in the hands of the powerful.
According to reports, the wired broadband access market and ISP access market is two different relevant markets, ISP access market is part of the cable broadband access market is very small. Wired broadband access market has a certain superiority does not mean that ISP access also has the advantage of position in the market. In fact our ISP access market competition, especially between China Telecom and China Unicom, any ISP could not be controlled access to the relevant market price. In addition to the base outside the telecom operator, there are more than 700 more than legitimate ISP can provide bandwidth, illegal broadband service providers are a minority.
“Will not speak violations haven’t found that even if violations to 1% fine, should also be to ISP dedicated line access as the base, rather than the entire cable broadband revenue of tens of billions of dollars as the base. Fine now reports have said hundreds of millions of billions of per cent, this sensational confusing concept, right? “The well-known Professor of Beijing University who declined to be named said.
On the development and Reform Commission to request the correction of ISP “price difference”, also had very strong differences of opinion within the industry.
“ISP line broadband access products, services and competition situation of different, then the price will differ. Such as domestic and international access prices, penetration and static access prices will certainly be different. And regional factors, trading conditions are different for each customer, of course, the price will be different. If you do not take into account different products, services and markets, direct price controls because the price difference is, it’s not that Government pricing? That is the real monopoly. ISP dedicated line access price if not in accordance with the market pricing mechanism, market-distorting the allocation of resources, affecting all aspects of the Internet industry chain, is not conducive to innovation and the long-term development of China’s Internet industry. “The professor said.