On The System Of Merger Control Rules Of The Bankruptcy Of The Company

Failing firm doctrine, whose rationality has been under heated discussion, is an important defense under merger control. Nowadays, its theoretic bases mainly include "private interest rational" and "economic rational". However, these two theories both have their own limitations, In fact, effective competition is a reasonable way to implement competition, which is the goal of merger control under antitrust law. Failing firm doctrine has both positive and negative effect on effective competition. Therefore, the right thing we should do is to acknowledge the rationality of failing firm doctrine, and then desire the specific conditions under which the doctrine can be applied. This doctrine can be applied only after following three points being fulfilled: first, one part or both parts of the merger should be going out of business in the future;second, there is no alternative buyer;third, we should make an analysis to make sure that the merger is good for competition. As to our country, the reality is that bankruptcy merger has developed for many years, and we still don't have a systematic statute to be adopted. Legislation is an agent thing that we should do right now. As antitrust law is concerned, we should adopt the failing firm doctrine to make sure that the merger is good for competition and at the same time the economy of scale is developed.