The hidden fourth phase of anti-monopoly reviews

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    clpstaff &clp articles

    Anti-monopoly reviews are complex enough, but the pre-acceptance conditions parties have to meet almost adds an additional phase to reviews

    With its effects-based approach, the Anti-monopoly Law (AML) is applicable to all concentrations, including foreign-to-foreign party transactions, which may eliminate or restrict competition in the Chinese market. A merger control filing with MOFCOM is required, when in the financial year preceding the transaction, firstly, either the worldwide aggregate turnover of all parties involved exceeded Rmb10 billion or the Chinese aggregate turnover of all parties involved exceeded Rmb2 billion, and secondly each of at least two of the parties involved had turnover in China in excess of Rmb400 million.

    Based on the international common understanding, the term “concentration” covers a wide variety of transaction structures such as mergers, the acquisition of shares or assets, the creation of joint ventures and the acquisition of control or decisive influence through contractual arrangements.

    Procedure and timeline


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