Competition law merger control

  • What is merger control and its impact on competition?

    Thus, merger control is the process or procedure of reviewing these mergers and acquisitions under established competition law.
    Merger control is necessary so that firms do not form entities that have the contention to make the market a very volatile place because of the amount of power they have..

  • What is merger control law?

    Definition.
    A merger control procedure is the formal channel through which a competition authority reviews mergers within its jurisdiction..

  • What is the EU merger control regulation?

    The EUMR requires compulsory and exclusive (one-stop shop) prior notification to the European Commission of mergers, acquisitions and certain joint ventures that involve a change of control and meet certain turnover thresholds..

  • Why is merger control necessary?

    National or supernational competition agencies such as the EU European Commission or the US Federal Trade Commission are normally entrusted with the role of reviewing mergers.
    Merger control regimes are adopted to prevent anti-competitive consequences of concentrations (as mergers and acquisitions are also known)..

  • For instance, a vertical merger can make it difficult for competitors to gain access to an important component product or to an important channel of distribution.
    This problem occurs when the merged firm gains the ability and incentive to limit its rivals' access to key inputs or outlets.
  • There are two ways that a merger between competitors can lessen competition and harm consumers: (1) by creating or enhancing the ability of the remaining firms to act in a coordinated way on some competitive dimension (coordinated interaction), or (2) by permitting the merged firm to raise prices profitably on its own
  • Under the Hart-Scott-Rodino Act, the FTC and the Department of Justice review most of the proposed transactions that affect commerce in the United States and are over a certain size, and either agency can take legal action to block deals that it believes would “substantially lessen competition.” Although there are some
A merger control procedure is the formal channel through which a competition authority reviews mergers within its jurisdiction. Since not every transaction 
The main aim of merger control is to prevent mergers leading to the creation or reinforcement of a dominant position and thus depriving consumers of benefits resulting from effective competition such as low prices, high-quality products, wide selection of goods and services, and innovation.

How many countries have a merger control system?

Over 130 nations worldwide have adopted a regime providing for merger control.
National or supernational competition agencies such as:

  • the EU European Commission or the US Federal Trade Commission are normally entrusted with the role of reviewing mergers.
  • What is merger control?

    (July 2008) ( Learn how and when to remove this template message) Merger control refers to the procedure of reviewing mergers and acquisitions under antitrust / competition law.
    Over 130 nations worldwide have adopted a regime providing for merger control.


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