On October 22, 2023, during an interview, a representative from the State Administration for Market Regulation (SAMR) provided insights into the accomplishments of their pilot program for antitrust reviews on business mergers, which began on August 1, 2022. This initiative has been entrusted to the market regulation authorities in five regions: Beijing, Shanghai, Guangdong, Chongqing, and Shaanxi.
Over the past two years, these provincial regulatory bodies have received 854 merger filings, with these entrusted cases accounting for approximately 57.74% of all simplified cases during the same period. The pilot program has seen a steady improvement in the effectiveness of antitrust reviews across the five regions.
Looking ahead, a mid-term evaluation of the pilot program is set to take place from March to July 2024. This evaluation will assess more than 60 key indicators through a combination of departmental assessments, self-evaluations from the provinces, discussions with corporate law firms, satisfaction surveys, and on-site research.
Preliminary results from the evaluation indicate that SAMR has made significant strides in implementing the “State Council Regulations on Merger Filing Standards.” Revisions to the “Merger Review Regulations” and “Work Rules for Merger Review” have helped create a more comprehensive institutional framework. Additionally, a new business system for antitrust reviews has been launched, which extends its reach to northern provinces, the Yangtze River Delta, the Greater Bay Area of Guangdong-Hong Kong-Macao, and northwest provinces along the Silk Road, thus enhancing regional cooperation.
In terms of efficiency, the data reveals that since the pilot program’s inception, the average time for processing entrusted review cases has been 18.1 days, with an average resolution time of 17.15 days. Notably, since the start of 2024, these figures have improved, with an average case acceptance time of just 15.36 days and a resolution time of 16.48 days, placing SAMR’s review efficiency among the best globally in major antitrust jurisdictions.
The climate of competition has also intensified. Local authorities have developed integrated media and 5G promotional models to enhance the visibility of merger antitrust review efforts, thereby strengthening compliance awareness among businesses. To improve the relevancy of their outreach, provincial regulators have created a key enterprise directory, collaborating with local state-owned asset management committees and industry associations. Initiatives like “private enterprise sessions,” “law firm sessions,” and “state-owned enterprise sessions” have been implemented to mitigate the risks of unlawful business concentrations.