Slow progress
Posted on Sun, 31 Aug 2014 22:20:52 GMT by Zhong Lun
Kejun Guo and Chen Jia of Zhong Lun Law Firm look at the latest developments in capital markets, including the reforms to the share offering system
More antitrust probes in the pipeline
Posted on Tue, 18 Feb 2014 10:16:31 GMT by Zhong Lun
Antitrust authorities are expected to launch more investigations this year in dozens of industries after expanding their teams nationwide, insiders have said.
Reducing the Cost of Patent Litigation
Posted on Wed, 31 Oct 2012 13:32:22 GMT by Zhong Lun
The problem of excess discovery expense is felt as much in patent litigation as any area of the law. This state of affairs motivated the Federal Circuit Advisory Council to take action. With the leadership of Chief Judge Randall Rader of the U.S. Court of Appeals for the Federal Circuit, a committee of distinguished jurists and attorneys was formed to address the problem of increasing discovery cost. Rader noted to the committee — and later in his speech introducing the committee’s work product — that his deep concern about the expense of patent litigation stemmed from input he had received, not only in the United States, but from respected voices abroad.
Merger Control Watch (16) MOFCOM Conditional Clearance on Wal-Mart – Yihaodian Merger
Posted on Fri, 17 Aug 2012 18:09:38 GMT by Zhong Lun
Merger Control Watch (16) MOFCOM Conditional Clearance on Wal-Mart – Yihaodian Merger
China Merger Control Watch (15) MOFCOM Conditional Clearance of United Technologies - Goodrich Merger
Posted on Tue, 19 Jun 2012 10:59:52 GMT by Zhong Lun
On Friday, 15 June 2012, the Ministry of Commerce of China (MOFCOM) conditionally cleared United Technologies (UTC)’s $16.5 billion acquisition of Goodrich, which is the 7th decision published in the last 8 months (A total of 15 merger review decisions were published since 2008). Attached please find a bilingual version of the UTC – Goodrich decision prepared by Zhong Lun antitrust and competition team for your reference.
MOFCOM ISSUES AMENDED MERGER NOTIFICATION FORM
Posted on Wed, 13 Jun 2012 10:40:17 GMT by Zhong Lun
MOFCOM has just published the amended Notification Form of Anti-Monopoly Review for Concentrations of Undertakings, which will take effect as of 7 July 2012. The new form will have a material implication for any upcoming merger notification which cannot be formally submitted before 7 July.
Merger Control Watch (14) MOFCOM Conditional Clearance on Google – Motorola Mobility Merger
Posted on Tue, 12 Jun 2012 10:22:03 GMT by Zhong Lun
On Saturday, 19 May 2012, the very last day of the permissible maximum period for merger control review under China’s Anti-monopoly Law (the “AML”), the Ministry of Commerce of the People’s Republic of China ("MOFCOM") conditionally cleared Google Inc. (“Google”)’s acquisition of Motorola Mobility Holdings, Inc. (“Motorola Mobility”) (the “Acquisition”).
China Anti-monopoly Law Enforcement Review 2012
Posted on Tue, 05 Jun 2012 17:33:09 GMT by Zhong Lun
The NDRC seems ready to take a stronger stance in its enforcement of price-related monopolistic conduct, particularly as demonstrated by NDRC’s unprecedented and uncompromising investigation against two major Chinese giant SOEs. Also, MOFCOM is becoming more and more sophisticated in reviewing merger cases as demonstrated in the four conditional approvals in 2011.The PRC antitrust legal regime is gradually maturing and PRC competition enforcement is entering a new stage. We are likely to see an increase in activities by the regulatory bodies in the implementation and enforcement of the AML and their respective rules in the near future. Active companies in China, particularly those with the leading market positions, must rise to more stringent compliance challenges and become well prepared for the potential scrutiny from the ‘young’ but ambitious PRC competition agencies.
Far-Reaching Impact of the First Judicial Interpretation on Antitrust Civil Litigations
Posted on Thu, 31 May 2012 11:14:55 GMT by Zhong Lun
Being the first interpretation on antitrust litigations issued by the Supreme People’s Court, the Judicial Interpretation lays the foundations of the antitrust litigation legal framework in China. The Judicial Interpretation provides guidance to the courts’ precise application of the Anti-Monopoly Law, the undertakings’ compliance and avoidance of the legal risks in their business operation, or consumers’ initiation of antitrust litigations. The Judicial Interpretation has relieved the burden of proof for the plaintiff of antitrust litigations while relatively increased the burden of proof for the defendant. This may change the landscape of the antitrust civil litigation in China.
Interpretation of the Foreign Investment Industrial Guidance Catalogue (2011)-- Energy Sector
Posted on Fri, 17 Feb 2012 15:48:58 GMT by Zhong Lun
MOFCOM Regulates Failure to File Business Concentrations
Posted on Thu, 02 Feb 2012 12:10:45 GMT by Zhong Lun
On December 30, 2011, the Ministry of Commerce of the People’s Republic of China (“MOFCOM”) officially issued Interim Measures on Failure of Filing for the Investigation of Concentration of Business Operators (“Interim Measures”), following six months of public comments on the Draft for the Interim Measures (“Draft for Comments”). The Interim Measures will come into effect on February 1, 2012.
“Firewall” to Ensure Independence of Acquiree - MOFCOM’s Conditional Approval of Seagate’s Acquisition of Samsung’s HDD Business
Posted on Wed, 04 Jan 2012 10:05:28 GMT by Zhong Lun
The Ministry of Commerce of the People’s Republic of China (“MOFCOM”) issued the Announcement of the Anti-monopoly Examination Decision on the Conditional Approval for the Acquisition of the Hard Disk Drive Business of Samsung Electronics Co., Ltd. by Seagate Technology PLC (the “Announcement”) on 12 December 2011, its tenth conditional clearance decision since the introduction of the Anti-monopoly Law of the People’s Republic of China (the “AML”). According to the Announcement, Seagate Technology PLC (“Seagate”) submitted the notification for the acquisition of the hard disk drive (“HDD”) business of Samsung Electronics Co., Ltd. (“Samsung”) by Seagate (the “Transaction”) to MOFCOM on 19 May 2011. MOFCOM formally accepted the case on 13 June, and decided to further review the Transaction on 13 July. MOFCOM extended the review on 11 October and finally made a conditional clearance decision on 12 December. It took 6 months for MOFCOM, from the date of accepting the case, to fulfill the examination on the Transaction. It has exhausted all three phases stipulated in the AML.
After Six Months, MOFCOM Finally Rendered Conditional Approval on the Establishment of Joint Venture between General Electric (China) Ltd. and China Shenhua Coal to Liquid and Chemical Co., Ltd.
Posted on Mon, 21 Nov 2011 10:44:50 GMT by Zhong Lun
The Ministry of Commerce of the People’s Republic of China (“MOFCOM”) has issued the Announcement of the Anti-monopoly Examination Decision on the Conditional Approval for the establishment of Joint Venture between General Electric (China) Ltd. and China Shenhua Coal to Liquid and Chemical Co., Ltd. (the “Announcement”) on 10 November 2011. This is the ninth conditional clearance decision since the introduction of the Anti-monopoly Law of the People’s Republic of China (the “AML”).
MOFCOM Recognizes Control over Undertakings on the Basis of “the Possibility of Participation in or influence over the Operation Could not be Excluded”
Posted on Mon, 21 Nov 2011 10:41:12 GMT by Zhong Lun
The Ministry of Commerce of the People’s Republic of China (“MOFCOM”) has issued the Announcement of the Anti-monopoly Examination Decision on the Conditional Approval for Penelope Company Limited’s Acquisition of Savio Macchine Tessili S.p.A. (the “Announcement”) on 31 October 2011. This is the eighth conditional clearance decision since the introduction of the Anti-monopoly Law of the People’s Republic of China (the “AML”).
The PRC and the US Signed Antitrust Memorandum of Understanding to Promote Antitrust Cooperation between the Two Countries
Posted on Mon, 01 Aug 2011 11:55:41 GMT by Zhong Lun
On July 27, 2011, China agencies and US Antimonopoly agencies signed the Memorandum of Understanding on Antitrust and Antimonopoly Cooperation between the United States and the People’s Republic of China. When a multinational enterprise is required to report a business concentration both to the PRC and the US, PRC Antimonopoly agencies and US Antitrust Agencies are very likely to communicate and cooperate on material matters related to the business concentration filing.
Stock Index Futures: A Potential Earning Point for Trustee Companies
Posted on Wed, 04 May 2011 17:28:29 GMT by Zhong Lun
This article is to foresee possible participation of the trustee companies in the trading of stock index futures (hereinafter referred to as the “SIF”) in the near future.
China – M&A: opportunities and challenges
Posted on Mon, 18 Apr 2011 14:13:49 GMT by Zhong Lun
It is estimated that M&A activity in 2011will be even more active than last year. But foreign investors, seeking M&A targets in China, will face unprecedented competition. To ensure successful M&A transactions in China, foreign investors should have a clear M&A strategy. In particular, foreign investors need to assess whether their M&A deals are able to leap over three potential hurdles, namely, industry access restrictions, antitrust review, and national security review.
Review of Public Antitrust Enforcement Cases Announced by NDRC
Posted on Fri, 11 Feb 2011 13:58:38 GMT by Zhong Lun
Unlike the Ministry of Commerce (“MOFCOM”), which is in charge of the merger control, the National Development and Reform Commission (“NDRC”) and the State Administration for Industry and Commerce (“SAIC”), which are respectively responsible for regulating price-related anti-competitive practices and non-price-related anti-competitive practices, have been regarded as relatively conservative in enforcing the Anti-monopoly Law (“AML”). At the time of this writing, we learned that SAIC has yet made any antitrust infringement decision or investigation since the AML came into force on August 1, 2008. While since the beginning of 2010, NDRC has published a few decisions and investigations against enterprises and industry associations engaging in cartels or abusive conducts. Although the deterrent effect might be questionable given that the sanctions attached to these cases are moderate in terms of the amount of fines, there are clear indications that NDRC is intending to actively exercise its powers. This article will discuss some notable cases announced by NDRC and analyze their underlying legal implications.
Client Alert: New Panda Bond Regulations Expand Scope of Eligible Issuers in China
Posted on Fri, 08 Oct 2010 14:23:38 GMT by Zhong Lun
Analysis on MOFCOM’s Decision to Approve Novartis AG’s acquisition of Alcon Inc. with Conditions
Posted on Wed, 01 Sep 2010 10:32:57 GMT by Zhong Lun
On August 13, 2010, China’s Ministry of Commerce (the “MOFCOM”) has officially approved the concentration of undertakings with respect to Novartis AG’s (“Novartis”) acquisition of Alcon Inc. (“Alcon”) with conditions. In its decision, the MOFCOM has determined that the aforesaid acquisition may eliminate or restrict the competition on the market of ophthalmological anti-inflammation /anti-infection products and contact-lens care products, and has attached restricting conditions respectively to such products market. It is the sixth case of concentration of undertakings that has been approved with conditions since China’s Anti-Monopoly Law (the “AML”) took effect in 2008.