Brussels, 21/12/2000 (Agence Europe) - The European Commission adopted a Communication on the corrective measures acceptable to resolve the competition problems raised by mergers and acquisitions. The aim is to give companies and the legal world a certain number of indications on the policy followed in this matter and to make this policy more predictable. "It is not a case of new rules, but a clarification of the Commission position on the remedies to be brought to problems posed by dominant companies" underlined the Competition Commissioner Mr Monti, "involving no changes to policy".
The regulation on concentrations (No. 4064/89) took effect in 1990, as well as the amendments made later by Regulation 1310/97, obliging the Commission to prevent the creation or strengthening of dominant positions running against the interests of the consumers (higher prices, less choice of products). The companies concerned may nevertheless resolve problems on their own by proposing "corrective measures" or undertakings to reestablish effective competition. "In this case, the Commission obviously prefers dis-investments (sale of assets) on the part of companies rather than behavioural undertakings that demand a control on the part of the Commission", Monti stipulated.
The Communication provides, more specifically, guidelines on the more important points, relating to both substance and procedure that the parties to a concentration in Europe and in the world must respect when proposing corrective measures. "Merger control is not about blocking mergers", Mr. Monti commented, "it was adopted with the main goal of creating a one-stop shop in Europe where companies can get rapid regulatory clearance for mergers and acquisitions, provided that sufficient competition is maintained to the benefit of the European consumer". The guidelines will enable companies better to understand the rules they must subject themselves to and thereby themselves provide the necessary responses, in the timeframe allowed, to problems of competition.
The problem of corrective measures is one of the most important aspects of the control of concentrations, as the number of conditional clearances has increased over the past few years, not only in number but also in complexity. Over the ten years of the regulation's being in force, the Commission has imposed conditions in 46 cases at the end of phase II, whereas 71 cases were cleared with undertakings after phase I prolonged, out of a total of 1412 final decisions, with 13 only projects having been prohibited, concerning, in particular, undertakings to sell assets; the Commission stresses that the activities sold must constitute a valid enterprise that that can compete effectively with the new entity. The Communication also stresses the importance of companies strictly respecting deadlines for handing in the undertakings provided for in the regulation.
The communication will be published on the Internet at the following address: http: //europa.en.int/comm/competition.