Government department supporting monopoly is not upholding rule of law

ON FRIDAY, THE STATE ADMINISTRATION FOR MARKET REGULATION released on its official website an official letter to the local government of the Inner Mongolia autonomous region, requiring the latter to rectify a wrongdoing of its public security department, which broke the Anti-Monopoly Law. Thepaper.cn comments:

The Public Security Department of the Inner Mongolia autonomous region issued an official document that required all seal-making enterprises within the region to purchase materials from a local company.

The administration said that this requirement violates Clause 32 of the Anti-Monopoly Law and notified the public security department to rectify its wrongdoing. However, the latter has not done any anything about it even though the administration has sent an official letter to the local government.

The media reported that after the local public security department issued the official document to support monopoly, the price of making a seal has risen from below 200 yuan ($30.7) to more than 280 yuan. That means enterprises in the region face a heavier financial burden.

The administration’s actions have aroused wide discussion, with some suggesting that the local police might hope to regulate the seal-making industry to avoid the falsifying of seals. However, that is no excuse for one company to monopolize the business with government support.

What makes the case special is that it was the public security department of the autonomous region that abused its power with its instruction that companies use just a sole supplier. Whether the State Administration for Market Regulation, newly founded this April, can enforce law in this case, will be a test of its resolve to regulate the market under the rule of law, as well as the authority of the law.

The central leadership has long stressed the importance of the rule of law. That requires persons and organizations alike to abide by the law.

That’s why most of the media comments about the case applaud the action by the State Administration for Market Regulation. By sending the official letter and making the whole process transparent, the administration has not only defended the rule of law, but also set a good example for similar departments to heed the central leadership’s call to enforce the rule of law.