The Fair Trade Law (FTL) takes a beforehand merger control to regulate mergers of certain scales. The legal criteria for approval is succinct : the overall economy benefit of merger must outweigh its competition-restraining disadvantages. The practices of the Fair Trade Commission (FTC) is loose, since until Sep. 1997 she has never prohibited any merger application. This paper reviews merger control in its regulation and reality and aims to provide suggestions for its reform. Its main conclusions are as follows: 1. FTC errors in saying that setting up a new undertaking by existing ones is not merger. 2. The concept of merger is to be enlarged at one hand, in order to include the so-called “Gemeinschaftunternehmen”, and to be narrowed at the other, so that insignificant increase of control and acquisition of stocks solely for investment will be excluded. 3. A fixed market share is not a useful threshold of merger control. Likewise the annual sales can not measure the market power of certain undertakings, e.g. banks and insurance companies. 4. The FTC bears the burden of proof and explanation in accepting or rejecting merger application. Although she can grant approval under conditions, but a partial approval or disapproval is not allowed.