Suggestions for Vietnam competition law on unfair price-fixing behavior from world experience

Abstract

The fluctuations of the economy and competitive market are increasingly exerting pressure on enterprises. With each market shift, companies strive to navigate through fierce competition waves in the battle for market share, customer attraction, and supply sources. Among these challenges, many enterprises resort to entering agreements that limit competition, notably engaging in price-fixing behaviors. These agreements alleviate the competitive pressures they face while eliminating potential rivals. Common price-fixing agreements pursued by enterprises include predatory pricing, excessive pricing, price squeezing, and price discrimination. These agreements reduce competitive pressure and impact the independent actions of competitors. This behavior threatens the economy by distorting the free market environment and altering the supply-demand relationship. Therefore, state intervention is necessary to protect consumer interests and maintain the efficiency of economic resource allocation and utilization. However, compared to the significant development of the current market economy, Vietnam's legal framework still has many shortcomings and cannot control all forms of distorted behaviors. Lose control has affected consumer interests, young enterprises, and healthy competitive markets. After researching and studying the characteristics of competitive agreement behaviors, especially regarding price-fixing agreements, the authors suggest improving the Competition Law 2018 and related guiding decrees to reflect market developments. The proposed adjustments in the research topic include the need to amend regulations on anti-competitive agreements and price-fixing, making them more transparent and fairly enforceable. Additionally, clear and transparent policies on leniency should be established, removing limitations on the number of enterprises eligible for this policy to create a level playing field and encourage diversity in the industry. These adjustments will enhance transparency and flexibility in legal texts, thereby supporting entities in complying with and effectively implementing competition principles. Meanwhile, supporting government intervention brings us closer to achieving Goal 16 of the United Nations 17 Sustainable Development Goals.