China Law & Practice

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Companies should conduct self-assessment for concentration risk

Prove your business will have a positive impact on the market

Issue: July/August 2011

When considering an M&A, conduct a self-assessment on potential business concentration risks and communicate with antitrust authorities if concerns arise, say counsel.

The Ministry of Commerce (Mofcom), China’s sole regulatory body responsible for antitrust reviews, is proposing conducting comprehensive investigations into business concentration activities. The draft regulation solicited public feedback from June 3 to June 13.

The draft detailed that when considering a business concentration, Mofcom would take into account market share and the degree of market control...

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