Merger Rules of USA & EC and the Enlightenment for Us

The unifying theme of the merger guidelines of USA is that mergers should not be permitted to create market power. Throughout the guidelines, the analysis is focused on whether the merger would result in a concentrated market, whether the merger raises concern about potential adverse competitive effects, whether the entry would deter the competitive effects of concern and whether there are any efficiency gains achieved only through the merger. The analysis of the EC's Merger regulation is focused on whether the merger is compatible with the principle of a market economy with fair competition in the common market. Both regulations are characterized by the objective of instituting a system ensuring that competition in the market is not distorted. By comparison, China's merger rule still falls far short of the expected objective and therefore, we gain a good deal of enlightenment from them in improving our merger rule.