4. What criteria does the Fair Trade Commission consider when making decisions on merger filings?
Although mergers among enterprises can reduce market competition or obstruct the function of market competition, they can also, in many instances, enhance the economic scale of production, lower product cost, increase the overall competitiveness of the resulting enterprise, or lead to a more rational production and distribution process. Therefore, when reviewing a filing the Fair Trade Commission will take into account, under Article 13 of the Fair Trade Act, both the overall economic benefit of the merger would bring and any disadvantages that would result from the restrained competition of market. Where the former outweigh the latter, the Fair Trade Commission may not prohibit the merger. In any decision it makes on a merger filing case in which it has extended the review period, the Commission furthermore may attach conditions or burdens to ensure that the overall economic benefit of the merger outweighs any disadvantages that would result from the restrained competition.
Relevant article(s) of law: Fair Trade Act, Article 13
Updated at：2016-02-22 11:18:42