Abuse of Market Dominance, Patent Exploitation and Relevant Market: Learning Lessons from China and the EU under International Competition Law

Abstract

Abuse of market dominance, relevant market and some patent-related abusive activities are analyzed in this study by looking at the EU and China's comparable competition experiences, in order to strengthen competition execution in developing countries. Regarding the relevant market structure, three types of markets are discussed, which include the product market, technology market and geographic market. The study finds that the EU’s approach is constitutional and precedent-centred, whereas the Chinese approach is policy-oriented and aggressive, with reference to market dominance and the relevant market. Three abusive behaviours that are related to patent exploitation are examined, which are Patent Thickets and Defensive Patenting, Tying and Bundling of Patents and Abuse of Standard Essential Patents (FRAND violations). Similar to EU nations like Germany and France, China's current IP-related legal system is based on civil law. It is observed that Article 102 of the Treaty on the Functioning of the European Union (TFEU) and Article 17 of China's Anti-Monopoly Law deal with the prohibition regarding the abuse of dominant position. In accordance with the legal study of the EU's competition law and China's antimonopoly law, this paper makes detailed proposals for developing countries’ competition guidelines, antitrust enforcement, and competition law reforms.