Merger Control In The European Union

When two or more companies decide to merge their businesses or to create a joint venture in order to boost productivity, gain new markets, create scale economies, or simply diversify their activity; they realize a concentration, either through a friendly merger, or through a hostile take-over. In such cases, there is a risk of restricting competition, due to the decreased number of economic agents in the specific market segment, or the strengthened position of a dominant player. That is why European (EC) Law has instituted strict rules for the control of such operations.

The following questions have been addressed in this article:

Which operations should be notified to the Commission and when (thresholds and triggering events)?
When does the procedure effectively start and how long does it last?
What is being checked?
What are the parties’ rights?
What are the sanctions for not complying with merger control rules?

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