Flashcards
Competition Issues
Cards in this deck (16)
- 1Merger ControlBlock where serious anti-competition effects
NOT considered by both EC & UK at same time - 2One-Stop-ShopEC
OR
UK - 3ECMR gives the Commission power to...Scrutinise cross-border mergers & acquisitions
Prohibit if incompatible with ECMR - 4Obligatory to NotifyCommission in ADVANCE
About any transaction covered by ECMR
Must be given CLEARANCE before completed - 5Condition precedentagreement not in force until Commission has approved
- 6Contact BEFORE notificationCheck correct documents
Basic rationale
Express a view as to the 'completeness' - 7InvestigationPhase I - 25 days
Phase II - 90 days
Conclusion - 8Prohibited SUBSTANTIVE TESTSignificantly impedes
effective competition
creation or strengthening of dominance - 9OFTObtains and reviews info
MUST refer to CC for investigation
Advise SoS of PUBLIC INTEREST - 10CCINVESTIGATES
SUBSTANTIAL LESSENING OF COMPETITION? - 11Relevant merger situation TT MSTBusiness AND shares
- Value of TURNOVER IN UK exceeds £70 million ('turnover test')
- Aggregate merged entity - at least 1/4 of particular goods/services in UK ('Market share test') - 12NO GENERAL REQUIREMENT TO NOTIFY OFT IF...Not covered by ECMR
BUT risk - reference by 3rd party (e.g. competitor)
More desirable: voluntarily notify - 13Merger FeesSliding Scale
£15,000 - £45,000
Depends on size of acquisition - 14OFT Monitors & InvestigatesIn the FIRST instance
Most cases OFT may refer to CC for further investigation - 154 Outcomes1. Found to not qualify - neither tests satisfied
2. may be cleared
3. Referred to CC for further investigation
4. undertakings may be sought in lieu of reference to CC - 16OFT duty to refer to CC if...relevant merger situation created & may result in substantial lessening of competition
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- Postgraduate Private Acquisitions Flashcards on Competition Issues, created by gabyc880 on 30/05/2013.
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- gabyc880
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