Merger Control in the European Union

Mergers and acquisitions have been used as effective means by companies to expand production,achieve economies of scale and improve ability to compete in international market under new conditions.Companies usually become more efficient,competition intensifies and the final consumer will benefit from higher-quality goods at fairer prices.However,the concentration of economic power may change market structure and therefore create or strengthen market dominance,which may further result in elimination or restriction of competition.Merger control refers to the procedure of reviewing mergers and acquisitions under competition law.Over 70 nations worldwide have adopted their regimes providing for merger control.Merger control regimes are adopted to prevent anti-competitive consequences of concentrations.The EU has established a regime for monitoring merger transactions by the Merger Regulation since 1990.In 2002,the Commission adopted a package of reforms designed to build on what is generally regarded as a successful record.The new merger regulation(139/2004) came into force in May 2004.This article will examine in detail the procedural and substantial rules of EU merger control regime and set forth our position on the future development of China's merger control regime.