The State Administration for Market Regulation conditionally approves Focus Media’s acquisition of Xinchao Media’s equity

China News Service, October 10. According to the website of the State Administration for Market Regulation, on October 10, the State Administration for Market Regulation issued an announcement to approve the acquisition of the equity of Chengdu Xinchao Media Group Co., Ltd. (hereinafter referred to as Xinchao Media) by Focus Media Information Technology Co., Ltd. (hereinafter referred to as Focus Media) with additional restrictive conditions. This case is the first concentration of undertakings case approved with additional restrictive conditions in the advertising industry in my country. The conditional approval of this case is a further deepening of antitrust law enforcement in the advertising media, an important livelihood service field, and also reflects the State Administration for Market Regulation’s high concern for the competition order in the traditional service industry.

After review, the State Administration for Market Regulation believes that this case may have the effect of excluding and restricting competition in China's domestic elevator media advertising market. In order to effectively reduce the possible adverse effects of this concentration of operators, the State Administration for Market Regulation made a conditional approval decision on the case after a comprehensive review and scientific argumentation in accordance with the law, requiring Focus Media, Xinchao Media and the post-concentration entities to make six restrictive commitments: continue to perform existing customer contracts and all commercial terms; continue to maintain service levels to customers; the annual actual transaction price of each city after the concentration shall not exceed the respective prices of Focus Media and Xinchao Media 24 months before the effective date. The actual transaction price corresponding to the city; 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, and shall not restrict customers' free choice by means of tying or attaching unreasonable transaction conditions; waive the rights related to the exclusive terms that have been entered into and effective, and shall not reach exclusive terms and automatic renewal terms for new or renewed spots; the anti-monopoly compliance system should be further improved and a sound anti-monopoly compliance management system should be established. After evaluation, the State Administration for Market Regulation believes that the commitment plan can effectively reduce the competitive impact caused by this concentration, protect the interests of downstream advertisers and consumers, and maintain the order of fair competition in the relevant market. It approved the case on October 9 with additional restrictive conditions in accordance with the law.

The State Administration for Market Regulation will strictly urge both parties to effectively fulfill restrictive commitments, give full play to the preventive role of centralized review by operators, and effectively maintain a fair, innovative and orderly competitive ecology in my country's elevator media advertising market.