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Business Review 2013 (III): Making Efforts to Well Develop Anti-monopoly Review of Concentration of Undertakings to Maintain the Fair Competition Order

In 2013, the Ministry of Commerce actively promoted and improved the legislation and law enforcement of anti-monopoly of concentration of undertakings. While ensuring the quality of case review, the Ministry of Commerce strived to promote the efficiency of case review, and made contributions to the maintenance of the fair competition order and promotion of the healthy development of national economy.

I. Improve rules of enforcement for law of anti-monopoly review in concentration of undertakings

Interim Provisions on Standards Applicable to Simple Cases of Concentration of Undertakings (hereinafter referred to as the "Provisions") were drafted. The Provisions make clear the standards and exceptions of standards applicable to simple cases, which is conducive to determination by the Ministry of Commerce of cases that obviously do not eliminate or limit competition, so as to enhance the efficiency of case review.

Provisions of Additional Restrictive Conditions for Concentration of Undertakings were drafted. The Provisions of Additional Restrictive Conditions for Concentration of Undertakings make full provisions on the determination of restrictive conditions, choose and appointment of supervision trustee, asset stripping, designation of buyers, stripping procedures, change and elimination of restrictive conditions, and legal liabilities of relevant parties, further standardizing the review and supervision and execution of conditional cases.

II.Make efforts to better conduct the law enforcement of anti-monopoly of concentration of undertakings

Improve reporting procedures, and shorten time limit for case-filing. We revised the declaration form of concentration of undertakings, which has further standardized relevant declaration materials and launched and initiated the declaration software system to improve the declaration efficiency and automation level. As at the end of October 2013, the Ministry of Commerce has received 185 declarations, growing by 13.5% year-on-year; and placed 175cases on file, a year-on-year increase of 25%.

Guarantee the quality of case handling, and improve the efficiency of investigation. In January-October 2013, cases concluded by the anti-monopoly bureau were 161. Among that, 21 cases were concluded in the first review stage, taking up 13%; 130 concluded in further review stage, accounting for 80.7%; ten in the extended review stage, taking up 6.2%. Four cases were approved conditionally, including Glencore's acquisition of Xstrata, Marubeni's acquisition of Gavilon, Baxter's acquisition of Gambro and MediaTek's acquisition of Mstar. Most of the cases were concluded in the early phase of the further review stage. Compared with that of 2012, the average review time was ten days shorter.

Strengthen the supervision and execution of conditional cases, and guarantee the fulfillment of remedy measures. Since the implementation of the Anti-Monopoly Law, the Ministry of Commerce has conditionally approved 20 cases. At present, there are six cases that have completed follow-up supervision and execution, and other 14 ones are under supervision. Conditional supervision and execution is the follow-up of review of concentration of undertakings. The Ministry of Commerce closely follows the competition situation after the deal to ensure the effective implementation of the cases with additional restrictive conditions.

III.Intensify law publicity and investigation and treatment of cases failed to be declared

In 2013, the Ministry of Commerce held publicity and training courses of Anti-Monopoly Law for national commerce authorities in three phases, inviting chambers and associations and major enterprises, and disseminating the Anti-Monopoly Law in order to enhance the sense of competition laws of market participants and the general public. During the enforcement of law, the investigation and treatment of cases failed to be declared were intensified. As at the tail-end of October, the Ministry of Commerce has investigated nine cases, two ones of which were investigated and punished. Thus, the authority of Anti-Monopoly Law is effectively safeguarded and the sense of enterprises to declare in accordance with the law is enhanced.

IV. Create a market pattern with effective competition, and e service industry restructure

In 2013, cases filed and investigated by the Ministry of Commerce involved many industries, including agriculture, manufacture, mining, transportation, wholesale and retail, information and culture, and also covered the industries mentioned in Guiding Opinions on Advancing the Merger and Reorganization of Enterprises in Key Industries released by the State in 2013. Through Anti-monopoly investigation, the Ministry of Commerce prevented the damage to the market competition by merger and reorganization, strived to create a market pattern with effective competition, improved the market competitiveness of enterprises, and ensured the long-term and sound development of industries.


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