Challenges and Prospects for Merger Control in China in the Digital Economy

Abstract

Internet brings not only efficiency and convenience, but also challenges to competition authorities all over the world. In obvious contrast to vibrant concentrations in the digital economy in China, the Chinese competition authority has only officially reviewed few cases, due to the variable interest entity structure, incompetence of the turnover-based notification threshold, and lack of experiences in solving new competition concerns brought by access to certain data set, privacy protection, innovation competition and leveraging effect. With establishment of the State Administration for Market Regulation, due attention has been and will continue to be paid to specific characteristics of digital economy from perspectives of both legislation and enforcement. Whether the SAMR would keep open to behavioral remedies deserves further observations. In order to facilitate the SAMR applying anti-monopoly laws and regulations to concentrations in the digital economy more properly and efficiently, the authors of this paper would suggest empowering qualified local competition agencies to review certain concentrations, amending anti-monopoly rules, strengthening knowledge management, establishing independent technical expert group and maintaining international communications.