On the way

No matter whether people are confident about the results of the investigation or not, China's anti-monopoly drive will continue on.

Yang said the Law of China Against Competition by Inappropriate Means was implemented in 1993, parts of which are related to anti-monopoly. But its efficacy cannot compare with the Anti-Monopoly Law.

"The Anti-Monopoly Law is the core of competition laws for the market economy," said Yang. "Only if we have the Anti-Monopoly Law, can we say China really set up a market economy system."

China's top legislature began to draft the Anti-Monopoly Law in 1994. After 13 years on the drawing board, the law was passed in 2007 and came into effect on August 1, 2008. But in the following three years, it seems that there has been no enforcement until now.

Why is this the case? 

According to Yang, the Anti-Monopoly Law has dealt with over 300 cases, but not many have been made public. Investigations take a long time to collect evidence.

"China's national conditions determine that anti-monopoly work cannot proceed smoothly without a hitch, but there has been active law enforcement," said Yang.

The tide of the anti-monopoly wave came early 2011. In February, NDRC promulgated two documents to regulate anti-monopoly work, and there was another one released in July to strengthen it.

Also in July, the Price Supervision Department of NDRC changed its name into Price Supervision and Anti-Monopoly Department. The anti-monopoly related divisions within the department were increased from one to three, and 20 more positions were added. All the moves were of great significance, according to Yang.

"It's not only an investigation but also a declaration of war to state-owned enterprises," said Yang. "NDRC must launch the investigation with the support of the State Council. It conveys a message that state-owned enterprises must discipline themselves. Any enterprise abuse of their power must be punished."

It seems the pressure is working.

On December 2, in response to the probe, the two companies announced they would pledge to enhance broadband access speeds during the next five years and lower broadband service charges.