The FINANCIAL — The European Commission’s competition department and the Ministry of Commerce (Mofcom) of the People’s Republic of China have signed on October 15 in Beijing best practices for cooperation on reviewing mergers.
Commissioner Margrethe Vestager, in charge of competition policy, commented: “A growing number of international transactions need to get the green light in several jurisdictions. The cooperation framework agreed today between the Commission and China’s merger review authority Mofcom reflects our commitment to a stronger cooperation between our two competition authorities.”
The practical guidance document signed on October 15 creates a dedicated framework to strengthen cooperation and coordination between the Commission and China’s merger review authority, Mofcom.
Cooperation between competition authorities increases the efficiency of investigations and reduces the burden on the merging parties, in particular when authorities are able to share information and to discuss timetables at key stages of investigations with each other and with the merging companies, according to European Commission.
The guidance will facilitate communication throughout the entire merger review procedure on issues of procedure and substance, including the definition of relevant markets, theories of harm, competitive impact assessments and remedies.
The signing of the guidance document reflects the ambition of enhanced cooperation on competition matters between the EU and China.