Enforcement Area
● Merger Control Review
According to statistics from the SAMR[6], in 2023, the SAMR concluded 797 merger cases, of which 786 were approved, including 782 cases approved without conditions and 4 cases approved conditionally, and 11 case were withdrawn by the notifying parties after the acceptance. The average time taken to conclude cases was 25.7 days.
With respect to case types, the vast majority of cases were subject to simplified procedures and were concluded at stage I: 707 cases were concluded under simplified procedures, accounting for approximately 90% of all approved cases, and 79 cases were concluded under normal procedures, accounting for approximately 10% of all approved cases; in addition, 698 cases were concluded at stage I, accounting for approximately 89% of all approved cases.
In terms of the delegation of merger review to authorities in pilot areas, in 2023, the Administration for Market Regulation (“AMR”) of five provinces and municipalities, under delegation, concluded 352 simplified cases in total, of which, the Shanghai AMR concluded 157 cases, ranking the first and accounting for about 22% of all concluded cases, followed by the Beijing AMR, the Guangdong AMR, the Chongqing AMR and the Shanxi AMR concluding 75 cases, 61 cases, 49 cases and 10 cases, respectively.
With regard to the parties to the concentrations, t the majority of cases (56%) involve domestic enterprises, with a total of 437 cases. This is followed by 253 cases (32%) involving foreign enterprises, and 92 cases (12%) involving both domestic and foreign enterprises. Additionally, state-owned enterprises account for 49% of all cases (388 cases), while foreign enterprises make up 46% (361 cases) and private enterprises make up 38% (296 cases).
As regards industry distribution, the cases are dominant by industrial reorganization in the sectors of real economy and sectors concerning people’s livelihood. The number of concluded cases in the real economy manufacturing industry reached its peak in 2023, with a total of 291 cases, accounting for 37% of all cases. Among these, the largest number of cases involved chemical materials and products, with a total of 53 cases. Other industries with a significant number of cases include automobile manufacturing, computer and electronic equipment manufacturing, and pharmaceutical manufacturing. Other than manufacturing industry, there were also a higher percentage of cases in industries such as wholesale and retail trade, transportation, production and supply of water, electricity, gas, and heat, financial services, real estate, and IT services.
In terms of transaction types, horizontal concentration cases are the most numerous, totaling 417 cases and accounting for 53% of all cases. Vertical concentration cases, totaling 311, account for 40% of all cases, while mixed concentration cases, totaling 191, account for 24% of all cases.
With regard to transaction types, there are 445 cases of equity acquisition, accounting for 56% of all cases, and 270 cases of establishment of joint ventures accounting for 34% of all cases.
In terms of the industries involved in conditionally approved cases, two cases involve the industry of information and communication technology, one case involves the industry of chemical raw materials and one case involves the pharmaceutical industry.
○ Statistics on the Merger Control Cases from 2018 to 2023
Throughout 2023, a total of 19 cases on monopoly agreements and abuse of market dominance were decided by local AMRs and subject to administrative measures, involving sectors of active pharmaceutical ingredients and drugs, insurance, building materials, public utilities such as water supply, gas supply, etc. These cases are summarized below:
In 2023, the SPC and other courts announced several noteworthy judicial cases involving monopolistic behaviors. These cases have offered valuable guidance and instructions on jurisdiction, rulings, and substantive analysis of monopolistic conduct from a legal interpretation and judicial practice standpoint. The following is a summary of the important judicial cases involving monopolistic conduct in 2023:
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If you are interested in further information regarding China antitrust matters, please feel free to contact Qian Xiaoqiang Lvshi (qianxiaoqiang@haiwen-law.com) or Lin Xixiang Lvshi (linxixiang@haiwen-law.com) or other attorneys of Haiwen & Partners.
[2] For more details, please see: https://www.samr.gov.cn/zw/zfxxgk/fdzdgknr/fldzfys/art/2024/art_3ce3a7fec76146cfb8a7927db10683b2.html
[3] For more details, please see: https://www.gov.cn/zhengce/content/202401/content_6928387.htm
[4] For more details, please see: https://mp.weixin.qq.com/s/5j1SxK7KdexhUmy9YA7Cjg
[5] For more details, please see: https://mp.weixin.qq.com/s/4h7zGnDxbbGNVjQQpGKmPg
[6] For more details, please see: https://mp.weixin.qq.com/s/evw4zd3Id3iSUIVd0wGfjw
[7] Article 60 of the Amended Anti-Monopoly Law (2022).
Beijing ICP No. 05019364-1 Beijing Public Network Security 110105011258
