On December 30, 2011, the Ministry of Commerce
("MOFCOM") issued the Interim Measures on
Investigation and Handling of Failure on Declaration of Business
Operators' Concentration, which became effective on
February 1, 2012. Under the measures, business operators who fail
to comply with MOFCOM business concentration reporting requirements
upon meeting the thresholds set out in the Provisions of the
State Council on Declaration Threshold for the Concentration of
Business Operators will be investigated and punished. Under
the measures, MOFCOM has the authority to carry out investigations
on its own initiative or in response to reports of violations.
MOFCOM may require suspected violators to provide documentary
evidence relating to the transactions according to the Measures
on Declaration of Business Operators' Concentration.
Follow-up investigations (and document requests) may be required at
MOFCOM's discretion. Violators are subject to a fine of up to
RMB500,000 and may be ordered to take certain actions to eliminate
the concentration, such as cessation of implementation of the
concentration, disposal of equity interest or assets, or transfer
of business units within a prescribed time limit. The full Chinese text of the measures is available
here. A related Q&A in Chinese is available
here. The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
ARTICLE
30 April 2012
MOFCOM Issues Measures On Investigation And Handling Of Failure On Declaration Of Business Operators' Concentration
On December 30, 2011, the Ministry of Commerce ("MOFCOM") issued the Interim Measures on Investigation and Handling of Failure on Declaration of Business Operators' Concentration, which became effective on February 1, 2012.