On June 18, the State Administration for Market Regulation (SAMR) released the Guidelines for Review of Horizontal Concentration of Undertakings (Draft for Comment) (the "Draft") to solicit public opinions by July 6, 2024.

For the purposes of the Draft, the term of "horizontal concentration of undertakings" refers to the existence of the horizontal relationship between the undertakings that participate in the concentration, which means that undertakings involved in the concentration are actual or potential competitors in the same relevant market. To determine whether the undertakings involved in the concentration are in the same relevant market, both the relevant product market and the relevant regional market shall be considered. The Draft stipulates that, when analyzing whether a horizontal concentration of undertakings has or may have the effect of eliminating or restricting competition, the anti-monopoly enforcement authority shall mainly look into seven factors, including the purpose of the concentration and the market concentration level of the relevant market. The Draft also adds that, to assess whether a concentration has or may have the effect of eliminating or restricting competition, the anti-monopoly enforcement authority may compare the potential competitive circumstances in the relevant market if the concentration had not occurred.

(Source: State Administration for Market Regulation)