Brussels, 05/09/2002 (Agence Europe) - After having granted regulatory clearance a few days before to a merger between the activities in Germany of auditors Ernst & Young and Andersen, The European Commission has just cleared the proposed merger between Ernst & Young France and most of Andersen France's business. The merger mainly involves the area of audit and accounting, tax and legal advice, and corporate finance with Ernst & Young, but does not involve Andersen France's business consulting arm. In line with its previous decisions on the UK and German market regarding the market for audit and accounting of large quoted companies, which need the services of the Big Five audit and accounting firms, such as Ernst & Young, Andersen, PriceWaterhouseCoopers (PwC), KPMG, and Deloitte Touche Tohmatsu. Although the merger will create France's biggest player on the audit and accounting market for large and quoted companies, the Commission found that there was no danger of a creation of a single dominant position due to the two parties suffering from the aftermath to which Andersen Worldwide was subject after Enron went belly up, as well as the fact that French rules require that a company's accounts be subject to two independent audits. This will reduce the gap between the merged entity and the other Big Four firms. The Commission has ruled out the possibility of a creation or strengthening of a collective dominant position in the market, as the transaction leads to the reduction of the big auditing firms from five to four. The Commission believes that although Andersen France might be able to continue as an independent audit and accounting firm for smaller clients, it could no longer service its large clients. Large clients demand a global network, a high degree of international expertise and a reputation that only the remaining Big Four firms can offer. Consequently a reduction in the "Big Five" to four companies was inevitable and must be seen purely and simply in the context of the disintegration of Andersen Worldwide. After the decision on the British and German markets, this third decision concludes the investigations carried out by the Commission on the involving Andersen national member firms in the EU. Other operations in the EU relating to Andersen national member firms have already been approved or are currently being examined by the national competition authorities.