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MOFCOM Shows Teeth Against Gun Jumping

On 20 March 2014, the Ministry of Commerce of the People's Republic of China ("MOFCOM") issued a notice announcing that it will make public decisions sanctioning companies failing to notify mergers that meet the filing thresholds. The notice further provides a fax number allowing whistle-blowers to report transactions allegedly infringing Chinese merger control rules.

This notice increases the pressure on companies to file their transactions in China, as it adds the risk of "name and shame" to the existing fining and unwinding sanctions. The whistle-blower hotline however raises risks of misuse by companies to harm competitors.

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