Pháp luật chống định giá lạm dụng của EU, Hoa Kỳ, Việt Nam – So sánh và kinh nghiệm áp dụng cho Việt Nam

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LUND UNIVERSITY

HOCHIMINH CITY

FACULTY OF LAW

UNIVERSITY OF LAW

TRAN HOANG NGA

REGULATIONS
AGAINST ABUSIVE PRICING
– A COMPARISON OF EU, US, AND
VIETNAMESE LAWS
AND AN APPLICATION OF ITS RESULTS TO
VIETNAM

Field of Study: International and Comparative Law
Code: 62.38.60.01

DOCTORAL DISSERTATION OF LAW

HO CHI MINH CITY - 2011


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LUND UNIVERSITY

HOCHIMINH CITY

FACULTY OF LAW

UNIVERSITY OF LAW

TRAN HOANG NGA

REGULATIONS
AGAINST ABUSIVE PRICING
– A COMPARISON OF EU, US, AND
VIETNAMESE LAWS
AND AN APPLICATION OF ITS RESULTS TO
VIETNAM
Field of Study: International and Comparative Law
Code: 62.38.60.01
DOCTORAL DISSERTATION OF LAW

Swedish Supervisor
Prof. Hans Henrik Lidgard

Vietnamese Supervisor
Asst. Prof. Le Thi Bich Tho

HO CHI MINH CITY - 2011


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Table of Contents

PREFACE ............................................................................................. 5
List of Abbreviations .............................................................................. 7
1.

INTRODUCTION .......................................................................... 9
1.1.

Background ........................................................................................ 9

1.1.1.
1.1.2.
1.1.3.

Relationship of competition and monopoly ...............................................9
Pricing in competition and monopoly...................................................... 11
Monopoly control laws in US, EU and Vietnam ..................................... 11

1.2.

Purposes: .......................................................................................... 25

1.3.

Definition and delimitation ............................................................. 26

1.4.

Methods ............................................................................................ 29

1.5.

Value of the research: ...................................................................... 31

1.6.

Outline .............................................................................................. 31

2. REGULATIONS AGAINST ABUSIVE PRICING UNDER EU
AND US LAW .......................................................................................... 33
2.1.

Basic rules and concepts on abusive pricing in EU and US......... 33

2.1.1. Basic rules ...............................................................................................33
2.1.1.1.
EU Competition Law and US Anti-Trust Law are directed against
abusive conduct, which includes abusive pricing ..................................................33
2.1.1.2.
Laws against abusive pricing in the EU and the US protect
Competition, not Competitors ................................................................................45
2.1.2. Concept of Dominant position, Market power and Monopoly power .....48
2.1.2.1.
General approach: ..........................................................................48
2.1.2.2.
Identification: .................................................................................51
2.1.3. The Relevant Market concept ..................................................................57
2.1.3.1.
The relevant product market: .........................................................59
2.1.3.2.
The relevant geographic market: ....................................................62

2.2.

Specific forms of abusive pricing ................................................... 64

2.2.1. Excessive pricing: ....................................................................................64
2.2.1.1.
Excessive pricing on the selling side..............................................65
2.2.1.2.
Excessive pricing on the buying side .............................................73
2.2.1.3.
Remarks .........................................................................................75
2.2.2. Predatory pricing .....................................................................................76
2.2.2.1.
EU test of predatory pricing ...........................................................83
2.2.3. Price Squeeze ...........................................................................................86
2.2.3.1.
Price squeeze in the US ..................................................................88
2.2.3.2.
Price squeeze in the EU..................................................................92
2.2.4. Price Discrimination ................................................................................98
2.2.4.1.
Price discrimination in the US .......................................................99
2.2.4.2.
Price discrimination in the EU ..................................................... 102
2.2.5. Discount or rebate schemes ................................................................... 104


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2.2.5.1.
Bundled discounts ........................................................................ 105
2.2.5.2.
Single-product royalty discounts .................................................. 110
2.2.6. Remarks ................................................................................................. 116

2.3.

Remedies to abusive pricing in EU and US laws ........................ 117

2.3.1. Conduct and Structural Remedies.......................................................... 118
2.3.1.1.
Termination of infringement ........................................................ 119
2.3.1.2.
Behavioural remedies ................................................................... 120
2.3.1.3.
Structural Remedies ..................................................................... 121
2.3.2. Monetary Remedies ............................................................................... 125
2.3.2.1.
Fines and penalties ....................................................................... 126
2.3.2.2.
Compensation............................................................................... 128
2.3.2.3.
Legal Fees .................................................................................... 133
2.3.3. Criminalization and Incarceration: ........................................................ 134
2.3.4. Remarks ................................................................................................. 134

3.
US

ABUSIVE PRICING IN VIETNAM COMPARED WITH EU AND
.................................................................................................... 137
3.1.

Background, basic rules and concepts ......................................... 138

3.1.1. Gradual development of legislation and enforcement capacity ............. 138
3.1.1.1.
Development of Vietnamese laws ................................................ 138
3.1.1.2.
Competent Authorities for regulating abuses of dominance ........ 146
3.1.2. Recent practices related to of abuse of dominance ................................ 150
3.1.2.1.
Vinapco case ................................................................................ 151
3.1.2.2.
Megastar case ............................................................................... 153
3.1.2.3.
K+ issue ....................................................................................... 154
3.1.2.4.
“Electric pole war” ....................................................................... 157
3.1.2.5.
Medicine and milk prices ............................................................. 161
3.1.3. Basic rules ............................................................................................. 165
3.1.3.1.
Abusive conducts including abusive pricing ................................ 165
3.1.3.2.
Vietnamese Competition Law protects competition and competitors
170
3.1.4. Concepts ................................................................................................ 171
3.1.4.1.

Dominance and monopoly position.............................................. 171
3.1.4.2.
Relevant market: .......................................................................... 175

3.2.

Specific forms of abusive pricing in Vietnamese laws ................ 177

3.2.1. Excessive pricing: .................................................................................. 178
3.2.1.1.
Excessive pricing on the selling side............................................ 178
3.2.1.2.
Excessive pricing on the buying side ........................................... 180
3.2.1.3.
Fixing a minimum re-selling price ............................................... 182
3.2.2. Predatory Pricing: .................................................................................. 184
3.2.3. Price Discrimination: ............................................................................. 186
3.2.4. Foreclosing competitors ........................................................................ 187
3.2.5. Remarks ................................................................................................. 189

3.3.

Remedies to Abusive Pricing ........................................................ 190

3.3.1. Conduct and Structural Remedies.......................................................... 191
3.3.1.1.
Conduct remedies ......................................................................... 191
3.3.1.2.
Structural remedies....................................................................... 192
3.3.2. Monetary remedies ................................................................................ 192

3.3.2.1.
Fine .............................................................................................. 192
3.3.2.2.
Compensation............................................................................... 193
3.3.3. Remarks ................................................................................................. 194


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4. SUGGESTIONS FOR IMPROVING VIETNAMESE
REGULATIONS ON ABUSIVE PRICING AND CONCLUSIONS ...... 195
4.1.
Suggestions for improving the presentation and communication
of competition matters.................................................................................... 196
4.1.1. Publication of VCAD and VCC decisions ............................................. 196
4.1.2. Categorize abuses of monopoly position along with abuse of a dominant
position
............................................................................................................... 197
4.1.3. Determination of a dominant position ................................................... 198
4.1.3.1.
Single firm dominance ................................................................. 198
4.1.3.2.
Collective dominance ................................................................... 199
4.1.4. Determination of a relevant market ....................................................... 199

4.2.

Suggestions on regulations on abusive pricing ........................... 200

4.2.1.

4.2.2.
4.2.3.
4.2.4.
4.2.5.
4.2.6.

5.

Excessive pricing ................................................................................... 200
Predatory pricing ................................................................................... 202
Price discrimination ............................................................................... 203
Market foreclosure ................................................................................. 203
Price squeeze ......................................................................................... 203
Discount and rebate schemes ................................................................. 204

4.3.

Suggestions on remedies for abusive pricing .............................. 205

4.4.

Conclusion ...................................................................................... 206

Annexes ...................................................................................... 208
1 - Extract of the VLC ......................................................................................... 208
2 - Extract of the VLC – With suggested amendments ....................................... 212
3 - Extract of Decree 116/2005 ........................................................................... 216
4 - Extract of Decree 116/2005 – with suggested amendments........................... 222

Table of Cases .................................................................................... 228

Official Documents ............................................................................ 233
List of websites .................................................................................. 235
BIBLIOGRAPHY .............................................................................. 236



PREFACE
This dissertation is the visible result of my Ph.D research within the
framework of the joint doctoral program between Lund University Faculty
of Law and Ho Chi Minh City University of Law, supported by SIDA’s
“Strengthening legal education in Vietnam” project. The research focuses on
laws against abuse of a dominant position in the EU, the US and Vietnam
utilizing a comparative law approach.
This dissertation would not have been accomplished without the help and
contribution of several individuals, to whom I would like to express my
deepest appreciation.
First, it was my great honour to be supervised by Professor Hans Henrik
Lidgard and Associate Professor Le Thi Bich Tho. Professor Lidgard has
given me invaluable guidance, advice and encouragement from the very first
to the final steps of the research. He spent a great deal of his precious time
reading and commenting my writing, and discussing the issues raised in my
drafts. Associate Professor Le Thi Bich Tho provided me not only with
warm encouragement throughout the whole process, but also with insightful
comments, especially with regard to the approach to Vietnamese law in my
dissertation. I would like to express my deep gratitude to Prof. Lidgard and
Asst. Prof. Le Thi Bich Tho for being my teachers and supervisors
throughout both my masters and doctoral degree programs. I am indebted to
them for much of the professional legal content of my dissertation. Any
remaining errors are entirely my own.
Second, I would like to send my special thanks to Mr. Robert Schwartz,

who helped me to improve my writing in the English language. Moreover,
he provided me with many practical comments and relevant and valuable
information. Without his help, my dissertation would not reach the standard
for international academic writing.
Third, I would like to thank Dr. Nguyen Thanh Tu, Professor Katarina
Olsson, and all the other professors, doctors who were opponents or
members of examining boards of annual prolongation seminars, during the
course of which they gave me many meaningful comments and feedback on
the content of drafts of this dissertation.
Fourth, one thing I will never forget is the support and encouragement of
the Lund University Faculty of Law and Ho Chi Minh City University of
Law during my research. I would like to express my gratitude to Prof.
Christina Moell, Prof. Bengt Lundell, Prof. Traskman, Asst. Prof. Mai Hong
Quy, Dr. Bui Xuan Hai, and many other professors, lecturers, administrative
staff and librarians of the two universities. In addition, I also would like to


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send my thanks to Suffolk Law School, where I was aided in US antitrust
law research. In particular my thanks go to Professor Stephen C. Hicks, Mr.
Jonathan D. Messinger and Suffolk’s administrative staff and librarians.
Finally, I would like to thank my parents, my children, my friends and
my students for their warm support, encouragement, care and love.
Ho Chi Minh City, August 31, 2011
Tran, Hoang Nga


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List of Abbreviations
ASEAN Associations of South East Asian Nations
AAC

Average avoidable cost

ATC

Average total cost

AVC

Average variable cost

CCHC

Competition Case Handling Council (Vietnam)

CIEM

Central Institute for Economic Management (Vietnam)

CJEU

Court of Justice of European Union

DOJ

Department of Justice (US)

EC

European Community (Communities)

EPL

English Premier League

EU

European Union

EVN

Electricity of Vietnam Group

FOEs

Foreign owned enteprises

FTAIA

Foreign Trade and Antitrust Improvements Act (US)

FTC

Federal Trade Commission (US)

GC

General Court (EU)

HCTV

Hanoi Cable Television

IDRC

International Development Research Centre

ICN

International Competition Network

LIRC

Long run incremental cost

LRAIC

Long run average incremental cost

MoF

Ministry of Finance (Vietnam)

MoIC

Ministry of Information and Communication (Vietnam)

MoIT

Ministry of Industry and Trade (Vietnam)

MPC

Minimum – per – cap policy

OECD

Organization for Economic Cooperation and Development


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SOEs

State owned enterprises

SRMC

Short-run marginal cost

UN

United Nations

UNCTAD United Nations Conference on Trade and Development
UNDP

United Nations Development Programme

US

United States of America

VCA

Vietnam Competition Authority

VCAD

Vietnam Competition Administrative Department

VCC

Vietnam Competition Council

VFF-FAN Vietnam football supporters association
Viettel

Army Telecom Group

VLC

Vietnam Law on Competition

VNPT

Vietnam Post and Telecommunications Group

VSTV

Viet Nam Satellite Digital Television

VTV

Vietnam National Television

WTO

World Trade Organization


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