The Antitrust Law Control On The International Mergers & Acquisitions

With the development of the socialist market economy, especially after China has joined in WTO, the International Merger & Acquisition (IMA) has been an important trend that occurs in the international direct investment. However, how to administrate the monopoly in China to guide the advantages of IMA and to control the side effects of IMA has become an urgent problem. The author makes research in a series of problems of the antitrust law control on IMA, and puts forward personal ideas, combining the company law, the security law, the regulations about listed company acquisition activities, the antitrust law, and other regulations related with IMA activities, on the basis of economic law theory, economics theory and legal economics theory.In the first part of this article, IMA is analyzed all around. Firstly, the analysis about the concept of IMA is listed. IMA is a kind of international direct investment and it's across the borders in different countries. The author holds that the legislative body in China should define IMA in a large scope to protect Chinese corporations' rights and interests. For example, if a foreign corporation utilizes its own branch or subsidiary in Chinese border to merger or purchase the Chinese target corporation, this activity is also a kind of IMA; Secondly, the analysis about the types of IMA is listed. According to whether the parties belong to the same production and management phase, IMA activities have been three types: horizontal merger, vertical merger and conglomerate merger; Thirdly, the analysis about the advantages and disadvantages of IMA is issued by means of economics theory. The aim of IMA is just to make the profit maximized and to extend the relevant market. So IMA is just like a two-edged sword, and it can not only quicken the development of economy, but also bring some side effects on the efficient competition. We must use the effective rules and regulations to control the monopoly; At last, the national conditions of IMA in China are issued. As for the merging sides, they always extend their market shares and the scopes of the corporations to generate the international monopolistic competition and oligopoly to try their best to interfere in the host countries' political and economic policy by means of their own economic power. In summary, they consider IMA as a kind of measure to reduce competition in the world. As for the developing countries like China, the domestic corporations always lose their existing relevant market at random during IMA.In the second part of this article, the criterions of monopolistic IMA are analyzed in details. The criterions of monopolistic IMA are always developing and changing, in generally speaking, from one to several, from easy to complicated. The author considers that the following criterions can verdict the monopolistic IMA activities: the drawing of the market's boundaries, the market shares and the market concentrations, the obstacles of the market entry, the efficiency and the international competitiveness. The author draws the conclusion that only market shares can't verdict the existence of the monopoly in the era of knowledge-driven economy. The monopolists who utilize their own market shares to deter the potential competitors to enter the market are the real ones who have the power to control the market. So "the obstacles of the market entry" should be considered as the most important criterion to verdict the monopoly.In the third part of this article, the international development trend is introduced in summary. All of the countries have changed their standpoints of the antitrust law control on IMA: 1. Many countries have changed their criterions from structure remedy to conduct remedy. For example, they think about whether the behavior has destroyed the efficient market system and abused the dominant firm position; 2. From the inland efficient competition to the international strategic thinking. The aim of the antitrust law has diverted to interfere in economy by operating the macro-adjustment and control...