競爭法(雙語)課程08-antimonopoly-law4-集中課件

1Part2AntimonopolyLaw:

ChinesePerspectiveLearningObjectives(1)DifferentiateConcentrationofUndertakingsfromM&A(2)ExplainHowtoFileaConcentrationNotification(3)ExplaintheFailingFirmDefense(4)ExplainHowtoCalculateMarketConcentrationContent1.ConcentrationofUndertakings

inAML2.TheCataloguesofConcentrationofUndertakingsinAML(merger)3.TheMotivesandJustificationsofConcentration4.Howtoconcentratelegallyandreasonably?5.FurtherExplanationofHorizontalMergers34Chapter5ConcentrationofUndertakings1.ConcentrationofUndertakings

inAML(1)DistinctionbetweenM&AincompanylawandAML1)Incompanylaw,M&Aemphasisonthechangeoftheshareholders.MergerAcquisitionsConsolidation5Merger,consolidationandacquisitions

“Merger”meansonecorporation"swallows"theother,buttheshareholdersoftheswallowedcompanyreceivesharesofthesurvivingcorporation.(吸收合并)A+B=A

“Consolidation"

means2companiesjointogethertocreateanewcorporation.(新設(shè)合并)A+B=C“Acquisition”meanstheobtainingofcontrollinginterestinacompany.(控股合并)Itoccurswhenonecompanyorcorporationtakescontrolofanotherone.62)InAML,ConcentrationofUndertakings(mergers)means(i)themergerofundertakings;(ii)theacquisitioncontroloverotherundertaking(s)byanundertakingbyacquiringequitiesorassets;or(iii)theacquisitionofcontrolover,orthepossibilityofexercisingdecisiveinfluenceon,otherundertaking(s)byanundertakingbycontractorbyanyothermeans.78InterlockingDirectorates

(董事兼任)Occurswhenanindividualservesontheboardofdirectorsoftwoormorecompetingcompaniessimultaneously.Theseareprohibitedifthetwofirmsmeetcertainsizerequirements.2.TheCataloguesofConcentrationofUndertakingsinAML(merger)(1)HorizontalMergersoccurbetweenfirmsatthesamelevelintheproductionanddistributionchain.(2)VerticalMergersoccurbetweenfirmsatdifferentlevelsintheproductionanddistributionchain.(3)ConglomerateMergers910ConglomerateMergersConglomerateMergersoccurwhenafirmseeksto:Extenditsproductintoanewmarketbymergingwithafirminthatmarket.Extenditsproductlinebymergingwithafirmalreadyproducingthatproduct.Diversifybyacquiringafirmthatdealsinunrelatedproducts.3.TheMotivesandJustificationsofConcentration(1)Themotivesofconcentration——aimtoseekimprovedfinancialperformance.Economyofscale;Economyofscope;Increasedrevenueormarketshare;Cross-selling;Synergy;Taxation;GeographicalorotherdiversificationResourcetransfer;Verticalintegration113.TheMotivesandJustifications

ofConcentration(2)JustificationsofConcentrationMergingpartiesmayreducetheircostsbycombiningcomplementaryassets,eliminatingduplicateactivities,orachievingscaleeconomies.Concentrationsalsomayleadtoenhancedproductqualityortoincreasedinnovationthatresultinlowercostsandpricesorinmorerapidintroductionofnewproductsthatbenefitconsumers.124.Howtoconcentratelegallyandreasonably?(1)Procedure1

ThebusinessoperatorsfilesaconcentrationdeclarationtoMOFCOM.MOFCOMconductsapreliminaryexamination.Thebusinessoperatorsmayimplementtheconcentration.NofurtherexaminationshallbeconductedorwheretheAnti-monopolyLawEnforcementAgencyfailstomakeadecisionwithinthetimelimit.(30days)134.Howtoconcentratelegallyandreasonably?(1)Procedure2

ThebusinessoperatorsfilesaconcentrationdeclarationtoMOFCOM.MOFCOMconductsapreliminaryexamination.MOFCOMdecidestoconductfurtherexamination.Itshall,within90daysfromthedateofdecision,completetheexamination.Thebusinessoperatorsshallrefrainfromimplementingtheconcentrationwithintheperiodofexamination.14(1)Procedure3

NationalSecurityReviewIncasetheacquisitionofdomesticenterprisesbyforeigninvestorsorothermannerstoconcentratereferredtonationalsecurity,besidesbeingreviewedaccordingtothislaw,shallbecarriedoutnationalsafetyreviewaccordingtorelatedregulations.15（2）ReviewProcessbyMOFCOM(3)Reviewdeadline第一階段第二階段延長階段30日第25條90日第26條60日第26條Howtoextendthetimelimit?Underthefollowingcircumstances,thetimelimitmaybeextendedtoadd60days:(i)theundertakingsconcernedagreetoextendthetimelimit;(ii)thedocumentsormaterialssubmittedareinaccurateandneedverification;(iii)othersignificanteventsoccurredafternotification.18(4)HowtoDecideConcentration?1)TheFactorsAffectingtheReview(i)marketshareintherelevantmarketandtheirabilitytocontrolthemarket;(ii)concentratedegreeoftherelevantmarket;(iii)effectonthemarketentryandtechnologyimprovement;(iv)effectonconsumersandotherundertakings;(v)effectonnationaleconomicalimprovement;(vi)otherfactorsshallaffectthecompetition,beconsideredbytheantimonopolyexecutionauthorities.192)TheConsequencesofReviewa)agreetheconcentration(takendecisionnottoprecedereview)b)approvalwithrestrictionsandconditions:whereaconcentrationwillreducethenegativeeffectoncompetition.theantimonopolyexecutionauthoritiesshallannouncethedecisionsofprohibitionorconditionalconcentrationtopublic.c)prohibittheconcentration20c)prohibittheconcentrationIfaconcentrationhasormayhaveeffectofeliminatingorrestrictingcompetition,theantimonopolyexecutionauthoritiesshalltakedecisionofprohibition.Iftheundertakingscanprovethattheconcentrationbringmorepositiveeffectthannegativeeffectoncompetition,ortheconcentrationpursuanttopublicinterests,theantimonopolyexecutionauthoritiesshalldecide,nottoprohibittheconcentration.21(5)ThresholdsforPriorNotificationofConcentrationsofUndertakingstheprecedingfinancialyeartheprecedingfinancialyearWorldwideturnover>=RMB10billionyuan>=2undertakings>=RMB400millionyuan(nationwideturnoverwithinChina)nationwideturnoverwithinChina>=RMB2billionyuan22(6)ExemptionofPriorNotification(i)oneundertakingwhichisapartytotheconcentrationhasthepowertoexercisemorethanhalfthevotingrightsofeveryotherundertaking,whetheroftheequityortheasset;(ii)oneundertakingwhichisnotapartytotheconcentrationhasthepowertoexercisemorethanhalfthevotingrightsofeveryundertakingconcerned,whetheroftheequityortheasset.235.FurtherExplanationof

HorizontalMergers(1)ThePotentialAdverseCompetitiveEffectsofHMs1)LesseningofCompetitionThroughCoordinatedInteraction(Assection2.1oftheGuidelinesstates,coordinatedinteraction"includestacitorexpresscollusion,andmayormaynotbelawfulinandofitself.")2)LesseningofCompetitionThroughUnilateralEffects242)LesseningofCompetitionThroughUnilateralEffectsByeliminatingcompetitionbetweenthemergingfirms,amergergivesthemergedfirmmoremarketpower.UnilateralEffectsfromMergertoMonopolyUnilateralEffectsRelatingtoCapacityandOutputforHomogeneousProductsUnilateralEffectsRelatingtoPricingofDifferentiatedProductsUnilateralEffectsRelatingtoAuctionsUnilateralEffectsRelatingtoBargaining25

ConcentrationlevelMarketstructureCR4(%)CR8(%)OligopolyⅠCR4≥85OligopolyⅡ75%≤CR4＜85%CR8≥85OligopolyⅢ50%≤CR4＜75%75%≤CR4＜85%OligopolyⅣ35%≤CR4＜50%45%≤CR4＜75%OligopolyⅤ30%≤CR4＜35%40%≤CR4＜45%competitionCR4＜30%CR8＜40%26Compliance:From“MustDo”toPro?tOpportunity27HintsCompliance:burdenoropportunity?What?Compliancemeansrespectingthelaw.Inthecompetitionfield,itmeansbusinessproactivelyrespectingcompetitionrules.Why?Thestakesarehigh.Companiesneedtobeawareoftherisksofinfringing