On January 5, China’s Ministry of Commerce (“MOFCOM”) issued new regulations regarding investigations and sanctioning of companies that fail to notify transactions under China’s Anti- Monopoly Law (“AML”). Under the regulations, which take effect on February 1, non-compliant companies may be fined up to RMB 500,000 (approx. $80,000 USD) and ordered to take measures deemed necessary “to restore pre-concentration conditions,” such as disposing of any acquired shares or assets. Companies under investigation for a possible failure to file will also be ordered to suspend the transaction pending MOFCOM’s investigation, which may last up to eight to ten months, although whether and to what extent the agency may seek to enforce such suspensions beyond business activities in China is not clear.
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