Research On Crown Jewel In The Concentration Remedies

In the facing of increasingly fierce market competition,Mergers & Acquisitions activity has been growing vigorously,in the pursuit of profits or under the pressure from exterior competition,enterprises' M&A are the inevitable consequences in market competition.Frequent M&A transactions,such as merger between Dow Chemical and Dupont,merger between Didi and Uber China,merger between Anheuser-Busch In Bev and SABMiller,have led to another antitrust boom.M&A is called concentration in China's anti-monopoly law,concentration is a two-edged sword which has both positive effect of economic benefit and negative effect of restricting competition.Antitrust regulation on concentration which results in anti-competitive effect is not simply rejected,but is to eliminate the adverse effect on competition in the market.As a flexible compromise,the system of merger remedies has been attracted more and more attention,because it is beneficial to achieve the double-winning of economic efficiency and market competition.Any one of the remedy measures which seems to efficiently solve competitive problems may have various enforcement risks during its implementation.Through the enforcement practice of antitrust authority around the world,we can find that Crown Jewel as a guarantee system to enforcement of remedy measures,can effectively reduce the risk of remedy measures' enforcement,achieve the goal of concentration remedy that restoring the effective market competition and protecting the efficiency of the merger.When the concentration receives conditional approval,if the original remedy program proposed by the merging parties is at high risk during the implementation,anti-monopoly enforcement authority may consider to apply Crown Jewel,that requires the parties to provide an alternative remedy program,once the original remedy program failed to complete within the required time,then the alternative remedy play is triggered.In the practice of our anti-monopoly enforcement authority,the Ministry of Commerce already has precedents for application the Crown Jewel,which provided materials for theoretical study.However,the Crown Jewel is a young system,compared to the United States,European Union and other countries or regions,China still has a long and uphill journey on the establishment of the system and the law enforcement practices.Based on the Crown Jewel applied in the typical cases as a focal point,the paper introduces this new logical thinking,“fundamental theory of the Crown Jewel--implementation comparison--situation of application--system improvement”,attempts to solve how to effectively apply the Crown Jewel to achieve the goal of concentration remedy.Firstly,on the basis of the theory of concentration and concentration remedy,it explores the Crown Jewel's concept,value and negative effects,concludes the relevant legislation and law enforcement experiences in the United States,European Union and other regions,and interprets its rationality from the prospective of jurisprudence and economics of the law.Secondly,through analyzing from the application premises,alternative remedy plan,effective conditions,enforcement and supervision of the Crown Jewel,it extracts common rules.Finally,combining with the current legislation,enforcement and problems of the Crown Jewel in our country,the author hopes to provides inspiration for the Crown Jewel's construction and expects to promote the improvement of legislation and law enforcement.