| Author (Person) | Davies, Eric | |||||||||||||||||||||||||||||||||||||||||||||||||||
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| Publisher | ProQuest Information and Learning | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Series Title | In Focus | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Series Details | 12.12.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Publication Date | 12/12/2002 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Content Type | News, Overview, Topic Guide | In Focus | |||||||||||||||||||||||||||||||||||||||||||||||||||
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On 11 December 2002 the European Commission published proposals to reform merger control in the Member States. The reforms are described as the most far-reaching since the current legislation came into force in 1990. The European Commissioner responsible for competition policy, Mario Monti, said the reforms 'will significantly improve our merger control system making it, I believe, a model to be emulated worldwide'. The proposals are the culmination of a wide-ranging consultation with interested parties, which started with the publication of a Green Paper in December 2001. They are thought to have been published sooner than expected due to recent criticisms of the Commission's actions under the current Regulation. The BBC commented that 'The rules governing company mergers have been overhauled by the European Commission after three of its bans were overturned by courts' and the Financial Times said the proposals 'come at the end of a difficult year for European antitrust regulators, who suffered an unprecedented series of defeats in the courts. The rulings strengthened the case of companies and lawyers who had accused the Commission of being too tough on mergers and forced Mr Monti to speed up the pace of reforms.' There are three elements to the new merger control package:
If adopted, the new Regulation would apply 'to situations of oligopoly which may give rise to competition problems'. It would also alter the timing of the notification of proposed mergers to the Commission, and would allow up to seven more weeks for certain cases to be dealt with. The Commission would be given greater investigative powers, backed up by higher fines for companies failing to supply information as requested. Cooperation between the Commission and the relevant authorities in Member States' would also improved. As far as mergers between competing firms are concerned ('horizontal' mergers), a draft Commission Notice is intended to 'clearly and comprehensively articulate the substance of the Commission's approach to the appraisal of 'horizontal' mergers' with the aim of ensuring 'transparency and predictability' concerning the Commission's actions. It is hoped that this will lead to greater legal certainty for the parties involved. The proposals also include a number of non-legislative measures, intended to improve the Commission's decision-making process. Of particular significance is the appointment of a Chief Competition Economist (to be advertised shortly - the post will be occupied, according to Mr Monti, 'by an eminent economist who will be tasked with providing an economic viewpoint to decision-makers, as well as ongoing guidance to the Commission's investigative staff'). There are also proposals to ensure that, for in-depth merger investigations, a peer review panel is appointed to give a fresh perspective on each case. Companies under investigation will be given the opportunity to review the contents of the Commission's case file at an earlier stage. The Commission also proposes holding meetings with companies concerned in a proposed merger to review progress ('state-of-play' meetings). The draft Regulation is scheduled to come into force on 1 May 2004 following adoption by the Council. However, the Financial Times suggested that 'Two aspects of the plan could generate opposition from member states, which need to approve the reform unanimously: the Commission's decision to maintain the key test used to block mergers, and proposed new rules on the allocation of merger scrutiny between Brussels and national competition authorities.' Links:
Eric Davies On 11 December 2002 the European Commission published proposals to reform merger control in the Member States. The reforms are described as the most far-reaching since the current legislation came into force in 1990. |
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| Subject Categories | Internal Markets | |||||||||||||||||||||||||||||||||||||||||||||||||||
