A Study On Theories Of Anti-Monopoly Regulation Of Conglomerate Mergers

Regulation of the business combinations has been an important content of theanti-monopoly laws of the world, and its fundamental purpose is to prevent theexcessive concentration of economic power, which will inevitably lead to damagecompetition in the market. Conglomerate mergers， as one kind of businesscombinations，because of its impact on competition is not intuitive，or more hiddenpotential hazards，for a long time is not the focus of anti-monopoly regulation.However, with the understanding of the conglomerate mergers gradually in-depth aswell as changes in the international economic situation, foreign countries havechanged their tolerant attitude, to enhance the review and intervention on theanti-monopoly control of conglomerate mergers.As important tools to evaluate conglomerate mergers, the various theories ofanti-monopoly regulation have great significance to prove and predict theanti-competitive effects of the merger behaviors may produce. Foreign countries haverich accumulation of theoretical and practical experience for the anti-monopolyregulation on conglomerate mergers.In writing this article, the author uses the U.S. and EU anti-monopoly legislation as the main basis to relate and analyze differenttheoretical models such as The Entrenchment Doctrine, the Theory of ReciprocalBuying, the Theory of Potential Competition and the Theory of Portfolio/RangeEffects.The article also analyzes the current international mainstream theories of theanti-monopoly regulation on conglomerate mergers to summarize the applicablegeneral law: because of the differences of anti-monopoly policy objectives to businesscombinations, and different understanding of the substantive review standards andregulations, one State can choose different anti-monopoly regulation theories toreview business combinations; one State can also apply different anti-monopolyregulation theories in different periods of economic development, and timely to makecorresponding adjustment; and one State can also apply more than one anti-monopolyregulation theory to regulate conglomerate mergers, as long as the theories can serveits anti-monopoly policy objectives and the statutory framework of the "illegalcriteria".Anti-monopoly course is relatively short, and the accumulation of theoretical andpractical experience for the anti-monopoly regulation on conglomerate mergers islimited in our country. But recently conglomerate mergers are in full swing, with thedouble force of the development of market economy and the actualization ofopen-door policy. Combined with the grim situation of foreign capital to strengthenthe control on China’s economy through conglomerate mergers, it is extremelynecessary to from a theoretical point deepen the study of conglomerate mergerregulation. In this regard, the theory of regulation and enforcement of foreignexperience are very useful reference for our country.EU since the early years of judicial practice in the EC to the latter part of statutelaw, its anti-monopoly regulation of conglomerate mergers experienced the sublimation from practical to theoretical. Due to the similarity of the economicsituation and the purpose of regulation, experience of EU has a more realisticreference for our country. To combine the national conditions, characteristics andproblems of the conglomerate mergers at the present stage, this paper seeks to makesome simple and obvious suggestions with anti-monopoly regulation theories as wellas rules designed, in order to be helpful for future legislative and judicial practice.