Brussels, 10/07/2014 (Agence Europe) - On Wednesday 9 July, the European Commission launched a public consultation on proposals to improve merger control at EU level outlined in a White Paper. Reform of the merger regulation in 2004 showed that there was scope for further improvement.
In a White Paper, “Towards More Effective EU Merger Control”, drawn up following public consultations in 2009 and 2013, the Commission makes proposals that would allow it to better deal with non-controlling minority shareholdings which may affect competition, and that would make referral procedures simpler and faster. Comments can be submitted until 3 October 2014. In light of the comments received, the Commission may then put forward a legislative proposal to revise the EU merger regulation.
To ensure a light, tailor-made review of acquisitions of non-controlling minority shareholdings which could harm competition, the Commission is considering changes to ensure that it, rather than the member states, can examine transactions which raise competition concerns and have a cross-border impact within the EU. At present, companies can buy non-controlling minority shareholdings in their rivals and thus be able to influence their behaviour but the Commission is not yet allowed to examine this although member states' competition authorities have this power.
The proposals aim to make case referrals between member states and the Commission more business-friendly and effective. Under the proposals, the companies which notify a merger would be able to use a simpler procedure that would also help member states to better cooperate amongst themselves when they are not referring a case to the Commission. The Commission is also planning to streamline notification requirement for non-problematic cases currently dealt with under the “simplified” procedure. (EL)