Specific guidelines set for new Anti-Monopoly Law
- China
- 08/07/2008
The first regulation that sets specific guidelines for the Anti-Monopoly Law was announced by the State Council late on Monday in a move to provide guidelines and direction for the enforcement of the law, which came into effect on August 1. According to the regulations, all combinations must apply to authorities in charge of anti-monopoly if the joint global revenue of the companies involved exceeds 10 billion yuan or if revenue in China exceeds 2 billion yuan. In addition, authorities also need to review the deal if two or more of the firms each reported more than 400 million yuan of revenue in China during the previous accounting year. By definition of the rule, “combination” refers to mergers and acquisitions; share or asset sales that give one company control of another; and deals in which one company can gain the control of or be able to impose decisive influence over another firm through signing contracts or other means.
