MOFCOM
Subscribe to MOFCOM's Posts

Supreme Court Clarifies Principles of International Comity in Vitamin C Ruling

Alert: The Supreme Court clarified the principles of international comity this week in a ruling pertaining to the long-running vitamin C antitrust class action litigation. International comity is the recognition a nation shows to the legislative, executive or judicial acts of another nation. Principles of comity state that US courts should defer to the laws of other nations when actions are taken pursuant to those laws. In this week’s ruling, Justice Ginsberg wrote that federal courts should accord respectful consideration to foreign government submissions when analyzing comity issues, but are not bound by them. This ruling vacates the Second Circuit’s decision in the case overturning the jury verdict for the class, and is a win for the class of US purchasers of vitamin C. Background In 2005, US purchasers of vitamin C filed a class action suit against four Chinese manufacturers who make the vitamin product in China and export it to the US. The US purchasers...

Continue Reading

China to Consolidate Antitrust Law Enforcement Power

The Chinese government announced on March 13, 2018, that it will consolidate the duties of three competition agencies into a new government agency to handle all antitrust matters. While it is too early to tell how this reorganization will impact China’s review of transactions and conduct cases, we believe that this change could lead to greater consistency and potentially more experienced attorneys reviewing competition matters. Access the full article.

Continue Reading

MOFCOM Asks Second Circuit to Reverse Judgment Against Chinese Vitamin Manufacturers

On April 14, 2014, China’s Ministry of Commerce (MOFCOM) filed an amicus brief asking the Second Circuit to overturn a ruling by the Eastern District of New York against Chinese vitamin manufacturers.  See Brief for Amicus Curiae Ministry of Commerce of the People’s Republic of China in Support of Defendants-Appellants, In re Vitamin C Antitrust Litigation, No. 13-4781 (2d Cir. filed Apr. 14, 2014).  The lower court rejected the defendants’ argument that the challenged conduct was required by Chinese law and refused to dismiss the case.  The case was later tried by a jury and ultimately resulted in a $157 million judgment against the defendants. As MOFCOM recounted in its brief, the Chinese agency has been involved in the litigation since 2006, when it filed its first amicus brief in support of defendants’ motion to dismiss.  MOFCOM explained that beginning in 1997, it required the defendants to participate in a Vitamin C Subcommittee in order to obtain...

Continue Reading

China’s MOFCOM Launches Electronic Merger Filing System

Beginning on October 28, 2013, all merger control cases before China's Ministry of Commerce (MOFCOM) will have to be filed, and only be filed, in electronic form.  In the past, it was required by MOFCOM to provide both hard and soft copies (i.e., paper or scanned copies) of all materials submitted.  The new filing system uses software developed by MOFCOM itself (System) that incorporates a digitalized merger notification form updated by MOFCOM in June 2012 (please see “China Streamlines Antitrust Notification Process”  http://www.mwechinalaw.com/news/2012/chinalawalert061c.htm). The System appears to work well.  Generally, the System allows a filing party to submit all data and information required by MOFCOM in electronic form (i.e., either by typing into or choosing an option in the software).  A data package, incorporating all data and documentation submitted in support of the filing, will be generated by the software automatically. The launch of this new...

Continue Reading

China’s Merger Control Rules Changing: MOFCOM Publishes New Draft Regulations on Remedies and Simple Cases

by Henry Chen, Frank Schoneveld and Alex An China’s Ministry of Commerce recently issued two new draft regulations.  The first provides a wider range of potential remedies to obtain the clearance of a concentration (e.g., a merger, acquisition, joint venture, etc.); the other defines the standards for “simple” merger cases that are eligible for a “fast-track” clearance procedure. To read the full article, click here.

Continue Reading

China’s Ministry of Commerce Announces Investigations into Failures to Notify a Concentration, Introduces New Transparency Measures

by Henry L.T. Chen, Frank Schoneveld, Jared Nelson and Sean Pan China’s Ministry of Commerce recently announced that it opened four investigations during 2012 into suspected non-compliance with China’s merger control notification procedures.  The outcomes of the investigations are still uncertain, but the actions clearly show increased efforts to ensure compliance through enforcement of the law.  Although the number of investigations was fairly low in 2012, the four cases are part of a new, larger trend of enforcement that began with a 2011 announcement to prioritize these investigations and was reinforced by new interim measures aimed at specifying compliance obligations and enforcement procedures.  Multinational companies with operations in China are encouraged to increase compliance efforts in this area in order to avoid becoming targets of this new enforcement priority. To read the full article, click here.

Continue Reading

China Streamlines Antitrust Notification Process

by Henry L.T. Chen, Frank Schonveld and Brian Fu The Ministry of Commerce of China (MOFCOM) recently promulgated a new amended merger notification form along with instructions for completing the form.  In doing so, MOFCOM aims to further regulate the procedures regarding antitrust review of large mergers, acquisitions and joint ventures; to promote transparency in the notification procedure; and to improve the efficiency of antitrust review. To read the full article, please visit: http://www.mwechinalaw.com/news/2012/chinalawalert061c.htm.

Continue Reading

China Law Alert: Focus on Competition – March 2012

by Henry L.T. Chen, Frank Schoneveld, Alex An, Brian Fu and Angel Wang McDermott Will & Emery has released the latest China Law Alert: Focus on Competition, which provides insight on current issues surrounding cross-border antitrust and transactional issues.  China’s New Merger Control Regime Makes Major Progress in Its First Three Years It is now just more than three years since China’s Anti-Monopoly Law (AML) was introduced. Compared with the well-established practices of US antitrust and EU competition authorities, AML enforcement is still in its infancy. However, China’s AML regulators, especially the authority in charge of merger control, the Ministry of Commerce (MOFCOM), has moved quickly to make its mark on international business. Now, most large, cross-border mergers, acquisitions and joint ventures must also successfully pass the rigors of review by MOFCOM as well as the European Commission and the US Department of Justice...

Continue Reading

China’s MOFCOM Now Fully Armed to Prosecute Companies Failing to Notify a Concentration

by Henry L. T. Chen, Frank Schoneveld and James Jiang China’s Ministry of Commerce (MOFCOM), following six months of public comment on and consideration of Draft Regulations, has now formally promulgated new Regulations on the Investigation & Treatment of Failure to Report a Concentration of Undertakings.  The new regulations will take effect as of February 1, 2012, and arm MOFCOM with clear powers to investigate and collect evidence on concentrations. To view the full article, click here.           

Continue Reading

MOFCOM Issues Its Eighth Conditional Clearance–Minority Shareholders Beware

by Carlo Carani and James Jiang Before granting its approval of Alpha V’s acquisition of Savio, China’s Ministry of Commerce (MOFCOM) required the private equity fund to divest its 27.9 per cent stake in Savio’s rival Uster.  With this decision, MOFCOM has signalled its willingness to closely scrutinize the influence of minority shareholders when conducting merger reviews under China’s Anti-Monopoly Law. To read the full article, click here.

Continue Reading

STAY CONNECTED

TOPICS

ARCHIVES