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Research & Academia

The Timing to Apply Enterprises Combination Approval Under the
Fair Trade Law


In order to avoid the difficulties of divestiture Enterprises combination is required to apply for an approval in advance according to Paragraph 1 Article 11 of the Fair Trade Law. To make sure the necessary intervention is not be taken too late, when is the latest time to apply for this approval is very important for the control of enterprises combination.

Enterprises combination does not tell what the future conduct the combined enterprises are going to do, competitive effects must be therefore ascertained by looking at the markets on which they are to operate. Contrary to restrictive agreements and concerted parties, enterprises combination involves the transfer of assets as well as a comprehensive new assignment of property rights, some times including license of IPR between the combined enterprises, enterprises combinations are never naked restraints, hence they are to be judged by a rule of reason standard. But in so far they relate to other aspects of the Fair Trade Law. Horizontal enterprises combination is, in a sense, an alternative to cartelization, though it may stem from very different motives and may have effects which cartelization cannot achieve. For this reason, not only public policy about horizontal consolidation should be consistent with that about cartelization, oligopoly and monopoly, it is also necessary to examine when those provisions regarding cartelization should govern combined enterprises.

This Project is to study on the problems mentioned above.

Updated at:2008-12-19 08:08:51