Merger Control

Question 1

What is the primary regulation governing merger control in the EU?

Answer 1

Regulation (EC) No 139/2004 on the control of concentrations between undertakings.

Question 2

True or False: The UK has its own merger control regime separate from the EU.

Answer 2

True.

Question 3

What is the main purpose of merger control in competition law?

Answer 3

To prevent anti-competitive concentrations that could harm competition in the market.

Question 4

Which UK authority is responsible for assessing mergers?

Answer 4

The Competition and Markets Authority (CMA).

Question 5

What is the test used by the European Commission to evaluate mergers?

Answer 5

The Significant Impediment to Effective Competition (SIEC) test.

Question 6

True or False: Mergers that do not meet the EU threshold can still be examined by national competition authorities.

Answer 6

True.

Question 7

What is the maximum duration for the EU merger review process?

Answer 7

The process can take up to 90 working days for a Phase II investigation.

Question 8

What is the role of the UK’s Phase 1 merger investigation?

Answer 8

To determine whether a merger raises competition concerns that require a more in-depth Phase 2 investigation.

Question 9

Name one of the remedies that can be proposed to address competition concerns in a merger.

Answer 9

Divestitures of certain business units or assets.

Question 10

What is a ‘concentration’ in the context of merger control?

Answer 10

A concentration occurs when two or more undertakings merge or when one undertaking acquires control over another.

Question 11

True or False: The UK merger control regime requires mandatory notification of all mergers.

Answer 11

False.

Question 12

What does the term ‘gun-jumping’ refer to in merger control?

Answer 12

Implementing a merger before obtaining clearance from competition authorities.

Question 13

What is the main legislative framework for merger control in the UK post-Brexit?

Answer 13

The Enterprise Act 2002.

Question 14

What is the role of the European Court of Justice in EU merger control?

Answer 14

To provide judicial review of decisions made by the European Commission regarding mergers.

Question 15

Fill in the blank: The CMA can investigate mergers that may result in a __________ of competition.

Answer 15

substantial lessening.

Question 16

What is the ‘one-stop shop’ principle in EU merger control?

Answer 16

It allows companies to notify a merger to a single competition authority rather than multiple authorities in different member states.

Question 17

Name one landmark case in EU merger control.

Answer 17

The merger between Siemens and Alstom was blocked by the European Commission.

Question 18

What is the importance of market definition in merger control?

Answer 18

It helps to assess the competitive effects of a merger within specific markets.

Question 19

What are jurisdictional thresholds under the EUMR?

Answer 19

FALLS UNDER IF:

Combined global turnover of all merging parties exceeds 5 billion euros

EU wide turmover of at least2 parties exceeds 250 million euros, unless each achieves2/3 of it turnover in one memebr state.

Question 20

UK threshold for merger review?

Answer 20

Cma considers:

Combined uK turnover of acquired business exceeds70 million pounds

Or

Merger results in a share of supply of25% or more in a substanti part of the UK.

Question 21

What transcations are covered under EU and UK law

Answer 21

Mergers of undertaking

Acquistitions of control

Joint ventures with full functionality

Question 22

What is substantive test in EU merger control?

Answer 22

Whether merger would significantly impede effective competition SIEC

• particularly by creating or strengthening a dominant position.

Question 23

What is the substantive test in UK merger control?

Answer 23

The CMa assess whether a merger results in a substantial lessening of a competition SLC within a market.

Question 24

Why is market definition crucila in merger control?

Answer 24

Establishes scope of competition analysis, involving:

Product market: sustitutabality from a concumer perspective

Geographic market: area where conditions of competititon are homogenous.

Question 25

Is notifications of mergers mandatory in the EU?

Answer 25

YE IF THRESHOLD IS MET: eg (higher turnvoer threshold, lower turnover threshold,
Tow thirds rule.

under EUMR NO139/20024

EEURPOEAN commmission reveiows merger under phas e1 or2.

Question 26

Is notification of mergers mandatory in the uk?

Answer 26

Is voluntary.

CMA can investigate on its own intiative is thresholds are met?

Question 27

PHASE1 EU EUMR

Answer 27

Preliminary review25 working days

• will themerger raise serious counts about competition/

Question 28

PHASE2 EUMR

Answer 28

In doepth investigation 90 working days, extendable).

• exmaines complex cases with potetnila comp concerns.

Question 29

Cma process for merger investigations?

Answer 29

Phase1 : initla assessment40 working days
Phase2: indoeth investigations24 weeks, extendable

Question 30

What remedies can be impsoed in EU and merger control?

Answer 30

Structural remidies: divestiture if assets or business units

Behavioural remidies: committments such as access to infrastrutcure or non discrimination obligations.

Question 31

EXTRA TERRITORIAL APPLICATION UK AND EU

Answer 31

Both regimes apply to transactions with significant effects within their jurisdiction, even if HQ are outside.

Question 32

Post brexit changes in the UK

Answer 32

UK no logner applies the EUMR but follows it own regime under the CMA.

Parallel investigations by European commission and CMA are possible.

Question 33

CASE LAW EU

Answer 33

Meta/giphy, blked due to concerns over competition in digital advertising

Question 34

CASE LAW UK

Answer 34

Microsoft/activision blizzard, CMA raised ncerns over cloud gaming services.

Question 35

PENALITIES FOR NON COMPLIANCE for fialing to nofiy a merger or implement remedies?

Answer 35

EU- fines of up to10% ofg global tunrover

UK, fines and potential divestiture orders.