Problems In Proposed Changes To Vietnam's Competition Law

May 2017

The Vietnam Competition Authority (VCA) is currently working on proposed amendments to the Competition Law of the Socialist Republic of Vietnam, which illustrate the need for economically sound effects-based competition analysis. Among the troubling provisions in the current draft is Chapter IV, Articles 18-20 on abuse of dominance, which would create a presumption of dominance for entities with market shares of 30 percent or more; create competition liability for collective dominance; and treat refusals to license as presumptively unlawful and a number of vertical restraints, including predatory pricing, exclusive dealing, tying, and minimum resale price maintenance, as essentially per se unlawful. Such an approach is contrary to the teachings from modern economics and likely to generate many Type I (false positive) errors, which, as the U.S. Supreme Court has explained, “are especially costly, because they chill the very conduct the antitrust laws are designed to protect.”

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