China’s State Administration for Market Regulation (SAMR, 市场监管总局) published its conditional approval of Focus Media (分众传媒)’s acquisition of Xinchao Media (新潮传媒) on 10 October 2026. The two firms held a combined 55–60 percent of China’s elevator media advertising market in 2024. In this article, we look at the market findings, the six conditions and the review timeline.
SAMR approved the deal on 9 October 2026 with six restrictive commitments
According to the SAMR announcement, the decision was made under the Anti-Monopoly Law. SAMR found that the deal had or might have the effect of eliminating or restricting competition in China’s elevator media advertising market.
In its news release, SAMR described the case as the first merger in China’s advertising sector to be approved with restrictive conditions.
| Issuing body | State Administration for Market Regulation (市场监管总局) |
| Document | Announcement on the anti-monopoly review decision to approve, with restrictive conditions, Focus Media’s acquisition of equity in Xinchao Media; no document number shown on the page |
| Decision date | 9 October 2026 |
| Published | 10 October 2026 |
| Effective date | Date of the announcement |
| Applies to | Focus Media Information Technology Co., Ltd. (分众传媒信息技术股份有限公司), Chengdu Xinchao Media Group Co., Ltd. (成都新潮传媒集团股份有限公司) and the post-deal entity |
| Relevant market | Elevator media advertising in mainland China |
| Duration of conditions | Five years |
Focus Media is buying Xinchao equity by issuing shares and paying cash. Before the deal, Xinchao was jointly controlled by Chongqing JD (重庆京东) and a natural person; afterwards, Focus Media will control it alone.
The two firms held a combined 55–60 percent of elevator media advertising in 2024
SAMR put Focus Media’s 2024 share at 50–55 percent, ranking first. Xinchao ranked second with 5–10 percent. The Herfindahl-Hirschman Index (HHI) for the market rises from 2,672 to 3,644, an increase of 972.
| Measure | Figure |
|---|---|
| Focus Media market share | 50–55% (ranked first) |
| Xinchao Media market share | 5–10% (ranked second) |
| Combined share after the deal | 55–60% |
| HHI before the deal | 2,672 |
| HHI after the deal | 3,644 |
| Change in HHI | 972 |
City-level prices may not exceed actual prices of the previous 24 months
SAMR accepted six commitments from Focus Media, Xinchao and the post-deal entity. The price condition applies city by city: without a legitimate reason, annual actual transaction prices in each city may not exceed each firm’s actual prices in that city during the 24 months before the effective date.
- Continue existing customer contracts and all their commercial terms, unless a customer materially breaches or chooses to end or change them.
- Keep service levels, including maintenance standards, picture quality and data feedback, no lower than before the deal.
- Cap annual actual transaction prices in each city at the 24-month pre-effective-date level, absent a legitimate reason.
- Supply services on fair, reasonable and non-discriminatory terms, with no refusal to supply or tying without a legitimate reason.
- Waive rights under existing exclusivity terms with property owners, and agree no exclusivity or automatic-renewal terms in new or renewed site contracts.
- Build an anti-monopoly compliance management system and hold regular training.
The conditions last five years and end only with SAMR approval
The parties must report on compliance to SAMR every year. After five years, they may apply to lift the conditions, and SAMR will decide based on market competition. Without SAMR approval, the conditions stay in force.
SAMR may check compliance through a monitoring trustee or by its own inspections. The announcement does not name a trustee.
| Date | Step |
|---|---|
| 16 May 2025 | SAMR receives the merger filing |
| 12 January 2026 | Review clock suspended |
| 9 October 2026 | Review clock resumes; conditional approval decided |
| 10 October 2026 | Announcement published |
| 12 October 2026 | Review deadline stated in the announcement |
Scope: one market, mainland China, 2024 shares
- SAMR defined elevator media advertising as a separate product market.
- The geographic market is mainland China (中国境内).
- Market shares and HHI figures refer to 2024.
- The price condition is measured per city, using each firm’s own past prices in that city.
Not disclosed in the source
- The size of the stake acquired and the transaction value.
- The number of cities, buildings or screens covered.
- City-level market shares or prices.
- The identity of any monitoring trustee.
