The State Administration for Market Regulation conditionally approves the case of Focus Media's acquisition of Xinchao Media equity.

On October 10, the State Administration for Market Regulation issued a public notice approving with additional restrictive conditions the case of Focus Media Information Technology Co., Ltd.'s acquisition of equity in Chengdu Xinchao Media Group Co., Ltd. This case is the first concentration of undertakings in China's advertising industry to be approved with additional restrictive conditions. The conditional approval of this case represents a further deepening of antitrust enforcement in the important public service sector of advertising and media, and also reflects the State Administration for Market Regulation's heightened attention to the competitive order of traditional service industries. Upon review, the State Administration for Market Regulation determined that the case may have the effect of eliminating or restricting competition in the elevator media advertising market within China. In order to effectively reduce the adverse effects that this concentration of undertakings may produce, the State Administration for Market Regulation, after comprehensive review and scientific demonstration, made a decision in accordance with the law to approve the case with additional conditions, requiring Focus Media, Xinchao Media, and the post-concentration entity to make six restrictive commitments: continue to perform existing customer contracts and all their commercial terms; continue to maintain service levels for customers; the actual annual transaction prices of the post-concentration entity in each city shall not exceed the respective actual transaction prices of Focus Media and Xinchao Media in the corresponding cities during the twenty-four months prior to the effective date; continue to provide elevator media advertising services on the principles of fairness, reasonableness, and non-discrimination, and shall not refuse to provide elevator media advertising services to customers, nor restrict customers' freedom of choice through tying or additional unreasonable transaction conditions; waive rights related to exclusive clauses already concluded and in effect, and shall not enter into exclusive clauses or automatic renewal clauses for newly signed or renewed sites; and shall further improve the antitrust compliance system and establish and perfect an antitrust compliance management system. Upon assessment, the State Administration for Market Regulation determined that the commitment plan can effectively reduce the competitive impact caused by this concentration, can safeguard the interests of downstream advertisers and consumers, and maintain fair competition order in the relevant market, and therefore approved the case with additional restrictive conditions in accordance with the law on October 9. The State Administration for Market Regulation will strictly supervise and urge both parties to the transaction to effectively fulfill the restrictive commitments, give full play to the ex ante preventive role of merger review, and effectively maintain a fair, innovative, and orderly competitive ecosystem in China's elevator media advertising market.