Guidelines Released for China’s Anti-Monopoly Law
Aug. 6 – The State Council has released the first set of specific guidelines for the new Anti-Monopoly Law which took effect August 1.
The regulation requires mergers and acquisitions with a total global revenue of more than RMB10 billion or a China revenue of RMB2 billion to report to authorities.
The law also covers deals made by two or more companies each reporting more than RMB400 million of China revenue in the past year.
An official from the Legislative Affairs Office of the State Council told Xinhua that the new rules will be used in the meantime and adjustments will be along the way should it prove hard to enforce.
He added that there could be special cases wherein although a company may not qualify under the new regulations, it could still limit competition if its market share was large.
China’s landmark anti-monopoly law aims to shield market competition from price-fixing and other forms of collusion. It bans behavior such as reaching monopolizing agreements, abusing a dominant market position and concentration of business operations that which may exclude or restrict competition.
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