On September 2, 2011, China's Ministry of Commerce
("MOFCOM") released on its website the
Provisional Rules on Assessment of Competitive Effects of
Concentration of Business Operators (MOFCOM 2011 Announcement No.
55, the "Rules"). With 14
articles, the Rules elaborated on the factors to be considered by
MOFCOM in assessing the competitive effects of a business
concentration, which have been listed in Article 27 of the
Anti-monopoly Law ("AML")1
. The Rules are implemented as of today (September 5,
2011).
The Rules set out the basic methodology for its competitive
analysis and the basic elements for application of each factor in a
merger review process. The Rules appear to identify market
share/market control power and market concentration levels as the
most important factors to be considered by MOFCOM in assessment of
competitive effects of a concentration.
