The introduction of a merger control regime will allow the MyCC to review proposed transactions and make the necessary orders to maintain the competitiveness of the market.
What is EU merger control?
The legal basis for EU Merger Control is Council Regulation (EC) No 139/2004, the EU Merger Regulation. The regulation prohibits mergers and acquisitions which would significantly reduce competition in the Single Market, for example if they would create dominant companies that are likely to raise prices for consumers.
What is the purpose of merger control?
Merger control regimes are adopted to prevent anti-competitive consequences of concentrations (as mergers and acquisitions are also known).
What is merger policy?
Merger policy is the most active area of U.S. antitrust policy. It is now widely. believed that merger policy must move beyond its traditional focus on static ef- ficiency to account for innovation and address dynamic efficiency.
What are merger thresholds?
Threshold is calculated by looking at the value of assets or turnover of the parties to the acquisition/merger/amalgamation. Group test. Threshold is calculated by looking at the acquirer group and the target to the acquisition/ merger/amalgamation.
What is the SIEC test?
The new test, most commonly known as the ‘SIEC’ (significant impediment to effective competition) test, was employed to tackle the inefficiencies of the “dominance test” that mainly stemmed from the wording of the test and the prerequisite of an undertaking assuming a dominant position or the strengthening a dominant …
What is the SLC test?
The test depends on whether the conduct, practice, provision of a contract, arrangement or understanding (CAU) or transaction has the purpose, effect or likely effect of substantially lessening competition (SLC) in a market. …
Who administers merger control at the EU level?
The European Commission Directorate General for Competition (DG COMP) administers merger control at an EU level ( ). 2. What are the relevant jurisdictional triggering events/thresholds? The Merger Regulation applies to any “concentration” that has an EU dimension ( see below, Thresholds ).
How does the merger regulation apply to concentrations?
The Merger Regulation applies to any “concentration” that has an EU dimension (see below, Thresholds). A “concentration” is defined as a lasting change in the control of an undertaking. “Control” is defined as the ability to exercise decisive influence over an undertaking.
How does the European Commission review mergers?
The European Commission (Commission) has exclusive jurisdiction within the European Economic Area (EEA) to review concentrations with an EU dimension. The Merger Regulation is supplemented by several detailed notices and guidelines on both the procedural and substantive aspects of the EU merger control regime.
Who are the undertakings concerned in a legal merger?
Undertakings concerned. In the case of acquisitions, the “undertakings concerned” are the acquirer and the target, but not the vendor. In a legal merger, the “undertakings concerned” are the merging parties.
