Average Process
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Which is NOT an aim of EU merger control?
- to prevent creation of dominant position
- to create national/EU champions
- to deal with abuse of dominance ex post
- to prevent impediments to competition
to deal with abuse of dominance ex post. - you need to notify the Commission, they then might allow it or not; there is a suspension period for them to decide.
THUS, THEY WANT TO PREVENT BEFORE AN ABUSE OF DOMINANT POSITION HAPPENS!
For the EUMR to apply, the two key dimensions are..
concentrations and EU dimensions
What is the definition of concentrations?
two or more undertakings that were formally idnependent are brought under unitary control
Under EUMR; control of concentrations with EU dimension is carried out by..
the EU Commission
What is the definition of the 'one-stop-shop' principle?
Concentrations established within the territory of the European Union shall all be notified to the European Commission.
What law applies to concentrations that are above the threshold requirements of Art.1(2) or Art. (3) of the EUMR?
EU competition law, but exceptions may apply.
the obligation to demonstrate that the notified concentration is not compatible with the internal market is on...
The EU commission - Why? Because there is not a presumption of compatibility, so they need to look at it and see whether it is compatible or not. They look at whether it is compatible with the internal market through defining the geographical market, and identify who the competitors are; to see whether the competitiveness exists. You want to see whether there is a significant impediment to effective competition.
What is the main material assessment criteria for the substantive appraisal of a concentration?
The SIEC test
"Protection of national interests may never justify application of national law to transactions subject to review by Commission"
true; you want to make sure the merger is okay under other national law as well. You want to make sure that the jurisdiction is placed with the authority that is best to review a merger. If a merger has an EU dimension; what is likely to affect only 1 MSs market, then the national law will deal with it.
What does merger control in the EU focus on?
Concentrations that may impede effective competition in the single market. Why? Simply to prevent it from happening.
"Unilateral effects can arise in a situation where the merged firm can raise prices due to the loss of competition."
true. - e.g.; you have 4 mid-sized companies in the market, two decide to merge into 1 big one; which then has a dominant position in the market; where they unilaterally can raise prices.
"Coordinated effects arise because post-merger firms modify their conduct to limit competition among themselves."
true.; for examply, when there is an oligopolistic market (3 or 4 competitors) and it is easy for them to see what is going on.
What does SIEC stand for?
significant impediment of effective competition.
"Horizontal mergers may be declared compatible with the internal market, if target in financial difficulties and would have to leave the market"
true; if a company is in financial difficulty and needs to escape liquidation, they may allow the merger to happen (failing-firm defense)
Which is not a key principle of the EU merger procedure?
- efficiency principle
- preventive control
- the proportionality principle
- commission's exclusive jurisdiction
proportionality principle.
What does 'gun-jumping' mean?
it is a term used in competition law to refer to; implementation of a merger before clearance given by the Commission. (doing it too early; you get fined up to 10% of the turnover).
Which is not a commitment undertakings make to obtain the Commissions' approval?
- divestures
- behavioural remedies
- horizontal block exemptions
- granting access to infrastructure and/or technology
Horizontal block exemptions