Anti-Monopoly Law: The Lawyers are Ready, but the Law Isn't

July 08, 2008 | BY

clpstaff

China's long-awaited Anti-Monopoly Law will become effective in one month. But lawyers are demanding that the government clean up some serious flaws and ambiguities in the draft mergers and acquisitions regulations.

China's Anti-Monopoly Law《反垄断法》 (AML) will finally take effect on August 1, and enterprises in China should be wary. After more than a decade of drafts and revisions, the law provides a standardized set of guidelines on competition, aiming to create a level playing field for both domestic and foreign enterprises. The law regulates certain activities such as price fixing and merger controls, which will impact all sectors in the entire Chinese market.

But enterprises and lawyers have been complaining about the AML, saying it is full of ambiguities. Lawyers are finding it difficult to interpret thoroughly. At the end of March, the State Council published the draft Regulations on Notifications of Concentrations of Undertakings for public comment, in an attempt to clarify some uncertainties.¹