Fortifying the antitrust framework
Mofcom brings an improved regulatory system with its first guideline for antitrust reviews of concentrations. Foreign investors should take note of the public interest aspect the new rules consider when assessing competitive effects
Issue: November 2011
Keywords (click to search):
Grandall
anti-monopoly
antitrust
competition
Mofcom
Nestle
public interest
With already more than three years experience conducting antitrust reviews on concentrations, the Ministry of Commerce (Mofcom) publicly announced its first set of guidelines on August 29 2011, the Tentative Provisions for the Assessment of the Competitive Effects of Concentrations of Business Operators (关于评估经营者集中竞争影响的暂行规定) (the Provisions). The Provisions reflect great significance in many facets.
Firstly, Mofcom has increased its transparency in terms of the substantive process of reviewing and assessing concentrations. As a result, it has become more convenient for relevant competitors, consumers and other stakeholders of interest to supervise antitrust enforcement. Secondly, in the Provisions, Mofcom took the opportunity to standardise which factors it will take into account the most and which interests it will consider principally when balancing the pro-competitive and anti-competitive effects of the concentration concerned. Relating to this, the Provisions would possess the function of conducting, standardising and facilitating the work of antitrust control of concentrations...
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