China could play a role in Microsoft-Yahoo deal

Microsoft's hostile-takeover attempt against Yahoo may encounter an unexpected hurdle in August after a Chinese anti-monopoly law that will extend the nation's economic influence far beyond its borders takes effect.

The law, effective Aug. 1, is intended to strengthen antitrust regulations the Chinese established in 1993. It will make China a third sphere of regulatory influence, matching the power of the European Union and the United States, according to legal specialists in this country and in China.

Formally enacted by the National People's Congress last year, the measure gives Chinese regulators authority to examine foreign mergers when they involve acquisitions of Chinese companies or foreign companies investing in Chinese companies' operations. Beijing could also consider national-security issues, according to a report by the official news agency Xinhua.

Microsoft and Yahoo at it again!

International Herald Tribune

Fri Mar 28

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