Legislative reform remains active in the APAC region, with Australia’s mandatory merger control regime nearing finalization, China seeking to amend its anti-monopoly laws, and Indonesia proposing to bolster its agency and make amendments to its competition laws to address the increasing complexity of competition issues. Digital and data continue to be a clear focus with increasing attention being given to the use of AI.
Australia
Mandatory Merger Control Regime
Australia is transitioning to a mandatory and suspensory merger control regime, set to take full effect on 1 January 2026. This new regime requires transactions that meet specific financial thresholds to obtain clearance from the Australian Competition and Consumer Commission (ACCC) before completion with businesses able to voluntarily engage with the ACCC from 1 July 2025. However, as we approach the end of Q2, there remain fundamental aspects of the new regime that are yet to be determined, creating uncertainty over when a business will be required to notify and obtain approval from the ACCC.
Overview of the regime as currently proposed:
- Thresholds— Financial based on turnover of the target, and the turnover of the acquirer or the value of the transaction. Different thresholds apply depending on whether an acquirer is classified as a large or very large corporate. The intention of the split thresholds is to ensure that smaller acquisitions by very large corporations are captured. The thresholds also apply a cumulative threshold over the past three years. (See our previous alert for detailed information on the proposed thresholds).
- Calculation of financial thresholds— The Government has currently proposed using GST revenue calculated at the time of signing transaction documents as the basis for calculating financial thresholds. The entities’ revenue to be included in threshold calculations turns on the definition of a “connected entity” which is tied to definitions in Australia’s Corporations Act 2001. Both principles, if implemented, create specific nuances to Australia against global mandatory merger control regimes.
- ACCC guidance— The ACCC has released process and substantive assessment guidelines that establish the regulator's expectations on how and when an acquirer or the merger parties will engage with the ACCC. It has also released substantive assessment guidelines. The substantive guidelines propose additional factors for consideration against the ACCC's previously documented approach, specifically calling out the elimination of potential competition, leveraging of market power across markets, multi-sided platforms, cumulative consideration of markets, and partial acquisitions.
- Filing fees— The proposed filing fees, released for consultation on 5 June, are phased and based on a cost recovery model, identifying: (a) Waiver application: AUD8,300; (b) Phase 1: AUD56,800; (c) Phase 2: AUD952,000; and (d) Public benefits: AUD401,000. This means that complex competition clearances could result in assessment fees of up to AUD1,418,100, creating an expensive regime that differs greatly from most global mandatory control jurisdictions.
Although fundamental aspects of the new regime remain unsettled, transactions that are likely to complete post 31 December 2025 should be considering now if a deal is likely to require ACCC approval, how this is documented, clearance timelines and the extent of information that will need to be disclosed to the ACCC in any notification, among other key considerations. Engaging with the potential application of this regime will be critical to ensuring smooth completion of any transaction.
Focus on fair trading concerns
The Australian Consumer Law (ACL) governs certain business-to-business conduct and has broad reaching provisions to protect consumers and small businesses. This includes prohibitions against misleading, deceptive or false conduct, unfair contract terms (see our previous alert) and unconscionable conduct. One of the ACCC's Compliance and Enforcement Priorities for 2025-26 (see our previous alert) is 'consumer and fair trading concerns in the supermarket and retail sectors, with a focus on misleading pricing practices'.
The Australian Government has also confirmed that it will work toward introducing bans on unfair trading practices, including subscription traps (see South Korea update below for more on this regulatory focus). The Government has also indicated that it intends that the prohibition on unfair trading practices will extend to protect small businesses (noting that businesses with less than 100 employees or those with less than AUD10million turnover are considered a small business).
The ACCC has also reminded business that misleading surcharging practices and other add-on costs should not be misleading and in line with the cost of acceptance. The ACCC will also be actively monitoring business compliance with applying payment surcharges and may take appropriate compliance or enforcement action.
China
Proposed amendments to antimonopoly safe harbor rules
The State Administration for Market Regulation (SAMR) has proposed incorporating market shares and revenue thresholds into the safe harbor provisions under its Antimonopoly Law. Vertical agreements that do not include price restrictions are proposed to be subject to a 15 percent market share cap and CNY300 million (approx. USD41 million) in revenue and agreements that fix or limit the resale price subject to a 5 percent cap with revenues less than CNY100 million (approx. USD14 million). With an ongoing focus on vertical agreements, in formulating specific standards, SAMR seeks to provide clearer and more unambiguous guidance for business as to the enforcement of vertical agreements. SAMR is seeking public comments on these revisions until 3 July.1
SAMR merger reviews
SAMR unconditionally approved 174 mergers in the first quarter of 2025 out of a total of 177 cases. The majority of cases were considered under SAMR's simple case procedure and were concluded within the 30 day timeframe after acceptance. 86 percent of cases were concluded in the preliminary review. State-owned enterprises accounted for around 60 percent and private enterprises accounting for about 40 percent of which around 41 percent involved foreign enterprises.2
Hong Kong
Criminal offence for failure to cooperate
As reported in January 2025 (see our previous alert), the Hong Kong Competition Commission was successful in its first criminal prosecution for a failure to attend before the Commission under its investigation powers. The Commission has issued a recent statement reiterating that "all persons shall cooperate with its investigations in accordance with the law, and that obstructing the Commission's exercise of its investigation powers constitutes a criminal offence and could lead to serious legal consequences".3
Japan
New JFTC Chairman
A new Chairman of the Japan Fair Trade Commission (JFTC) - Eiji Chatani - was appointed on 21 May 2025. Chairman Chatani's current term of office is until 5 March 2028, which is the reminder of his predecessor's term, but will likely retain this position for around 8 years until retirement age.
New smartphone software laws commence on 18 December 2025
The Act on Promotion of Competition for Specified Smartphone Software (Mobile Software Competition Act (MSCA)) will become effective on 18 December 2025. The MSCA stipulates that, among business operators providing software particularly necessary for the use of smartphones (basic operation software, application stores, browsers, and search engines whose business operate in relation to the provision of such software that is capable of excluding or controlling the business activities of other business operators, shall be designated based on indicators such as the number of users or other metrics of business scale for each type of specified software.
The JFTC published draft guidelines for consultation in May, which highlight the importance of promoting competition for specified software, with the guidelines the subject of ongoing review to reflect changes in market conditions and business practices. The Guidelines articulate the prohibited conduct and "desirable practices…to avoid violations" associated broadly with the unjust use, acquisition or transfer of acquired data, discriminatory practices or unfair treatment, exclusive arrangements, restricting technology, functions, options and choice.4
Generative AI
On 6 June 2025, the JFTC released its report on Generative AI. The report recognizes that there are opportunities and risks associated with Generative AI, with particular concerns raised by various stakeholders through its consultation on the ability of tech giants to integrate their own generative AI into existing services. The JFTC has indicated that it will continue to monitor this space and publish follow up reports as needed.5
Singapore
Bid rigging in public tenders
The Competition and Consumer Commission of Singapore (CCCS) has fined engineering and construction companies a total of SGD4.64 million for engaging in bid rigging in relation to three public-sector tenders. The companies coordinated on prices and documents in response to bids issued by the People's Association in 2022 eliminating competitive pressure. This was notified to the CCCS by the People's Association during the big process. The CCCS reiterated in its decision that "bid-rigging undermines fair competition, distorts the regular operation of market forces, and prevents customers from obtaining genuine and competitive offers" and it will continue to take a more active enforcement stand to ensure Singapore markets work well.6
South Korea
Market survey on the data sector
The Korean Fair Trade Commission (KFTC) has launched a market survey aiming to examine transaction practices and market conditions in Korea's data sector, assess the existence of unfair practices and identify emerging risks to competition and consumer welfare. The resulting "Data and Competition Policy Report" will be finalized by mid-2026.7
The survey will target major domestic and multinational companies involved with the collection, storage and utilization of data across online advertising, social networking, e-commerce, search engines, messaging services, app marketplaces and online video services. White & Case anticipates that it will focus on complex, time-consuming cancellation processes, silent auto-renewals, barriers to switching and dark patterns.
Indonesia
Proposal to strengthen the Indonesia competition regulator
The Indonesian Government is proposing to complete a review of the laws governing competition by the end of 2025. The proposal will amend the Prohibition of Monopolistic Practices and Unfair Business Competition is considered important in achieving economic growth and bringing Indonesia into line with the "dynamics of competition in the digital era and globalization".8
The Government is also intending to increase funding for the operations of the Business Competition Supervisory Commission and strengthen the institution so that the "authority can be more effective in supervising business competition". It is recognized that level playing fields is important to a healthy business climate and an improved investment climate is good for the national economy.9
Competition law in the APAC region continues to be a complex maze of regulatory reform. While reform in China is seeking to legislate to provide businesses with safe harbors for certain conduct, Indonesia is seeking to strengthen its oversight to help support economic goals. Regulators continue to stay focused on the implications of data and the use of AI and the extent to which it can be used to the detriment of competitive markets or adversely affects consumers.
1 https://content.mlex.com/Attachments/2025-06-04_03STXD0P8G60X6I4%2FSAMR_explanation_revision_Regulations_Prohibiting_Monopolistic_Agreements_20250604.doc
2 https://www.samr.gov.cn/xw/zj/art/2025/art_5ba4d20b788b431b8b2803c1359c5571.html
3 Failure_to_comply_PR_EN.pdf
4 MSCA_SubordinateLegislations_and_Guidelines.pdf
5 https://www.jftc.go.jp/file/250606/Summary.pdf
6 https://www.samr.gov.cn/xw/zj/art/2025/art_5ba4d20b788b431b8b2803c1359c5571.html
7 https://www.ftc.go.kr/viewer/synap/skin/doc.html?fn=20250528090618578_pxDjeCqeIu.pdf&rs=/viewer/synap/preview/
8 https://content.mlex.com/#/content/1649303/indonesian-antitrust-agency-submits-proposal-to-amend-competition-law?referrer=portfolio_openrelatedcontent
9 https://content.mlex.com/#/content/1660447/indonesian-legislature-aims-to-complete-competition-law-amendment-this-year?referrer=portfolio_openrelatedcontent
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