Analyze On The Failing Firm Defense In Antitrust Review On Merger

Failing firm defense has been established for more than eighty years.It is an important defense in antitrust law, that has been adopted anddeveloping by all major antitrust jurisdictions. The system is facing anew test due to the influence of worldwide economic crisis, accompanyingwith increasing number of mergers and acquisitions of failing firms. Ourcountry is not isolated from worldwide economic crisis. The demand tothe failing firm defense is expanding no matter to the firms on the edge ofbankruptcy, or to the firms who want to capitalize on the opportunity toexploit the international market. However, our country does not haveclear stipulation on this system. Therefore, to improve our country’santitrust control system, it is important to build the failing firm defensesystemThis article based on the research of enforcement of the system inmajor antitrust jurisdictions, starting from the system’s value to address onthe system’s elements and methods of judgment. This article furtherdiscusses whether the application should be more lenient. Lastly, byreferring to other jurisdictions and this article’s discussion’s result, thesuggestions to build the failing firm defense is provided.This article consisted of six parts, including the introduction.The introduction introduced the issue the article wanted to solve. Italso briefly introduced other experts’ research and the advantage of thisarticle.The first chapter briefly introduced the failing firm defense system.First, it specified the failing firm defense system’s definition and furtherpointed out that the application is aimed at the regulation on the mergersand acquisitions. Second, it briefly introduced the origin and development of the system. Third, it briefly introduced the application ofthe system in major antitrust jurisdictions. It summed up the same pointsof different jurisdictions. The different points were the start points ofsome important discussion. Both the same and different points revealedthe following parts.The second chapter discusses the value of the failing firm defensesystem. This part analyzed the current view on the system’s value one byone, and then finally indicated that the system is to protect the order ofcompetitions and consumers’ rights. This was the foundation of thefollowing chapters.The third chapter analyzed the failing firm defense system’s elements.This chapter was further divided into three sub-parts. First, it discussedthe relationship between failing firms’ merger and the origin of the marketpower. Second, it discussed the system’s elements and the definition of"failing firms." Third, it discussed whether the application’srequirements should be more lenient.The forth chapter made suggestions on the establishment of the firmdefense system in China. It firstly analyzed the necessity to establish thesystem in our country. Second, it analyzed the feasibility of establishingthe system in our country. Third, it concluded this article’s discussionand made some suggestions on the establishment of the system, and I hopethat was helpful for the establishment of the system.The last part is the conclusion.