Brussels, 27/11/2003 (Agence Europe) - The Competitiveness Council adopted by unanimity, a political agreement on the new "merger" regulation for inspecting company mergers. Germany, which initially opposed the draft being adopted (the only one to do so), finally supported the agreement. It harboured reservations on the definition of the "test" for deciding whether a merger should be banned or not, preferring the definition in force in Community law and which had been based on German law.
This definition stipulates that in accordance with Community law, "concentrations that significantly hinder effective competition, notably due to the creation or strengthening of a dominant market prostitution in the common market or a substantial part of the latter" will be incompatible.
In an effort to satisfy Berlin, a joint declaration by the Commission and the Council outlines the interpretation of this definition. The United Kingdom and Ireland, which also had reservations, supported the compromise as well.
The Council kept most part of the draft presented in December 2002. The new merger regulation, which is expected to enter into force in May 2004, will expand the Commission's investigation powers (providing it with the legitimacy to oppose entry during investigations), extend examination deadlines (four weeks in the second phase of examination) and give companies the chance to notify their mergers before the conclusion of a formal agreement. It will also allow companies to request a "single Community counter" for notifying their project when the merger in principle should be notified in three Member States or more. Single notification should, however be agreed on by all Member States involved.
The Commissioner for Competition, Mario Monti welcomed in a press statement adoption of the political agreement.