This chapter briefly discusses the subject of merger control. Merger control is an important component of most, though not all, systems of competition law. Merger control has been under particular scrutiny in recent years, partly as a result of governments, competition authorities and think tanks worldwide seeking to grapple with increasing industrial concentration. Separately, there has been a certain backlash against the trend towards the globalisation of markets, and national governments, as well as the EU, have considered whether controls over the foreign acquisition of key industries are required, and whether the basic test of merger control—would a merger be harmful to competition?—should be supplemented by broader provisions enabling ‘the public interest’ to be taken into account. Against this background, the chapter begins by explaining what is meant by a ‘merger’ or ‘concentration’, the term used by the EU Merger Regulation (EUMR). It then proceeds to describe the different effects of mergers between independent firms from within and different production levels, the proliferation of systems of merger control, why firms merge, and the purpose of merger control. The final section of the chapter deals with how to design a system of merger control when a country decides, as a matter of policy, to adopt one.
Chapter
20. Mergers (1): introduction
Book
Richard Whish and David Bailey
Competition Law explains competition law and policy in the EU and UK. The intention is to provide the reader with an understanding of competition law and policy, to introduce the reader to key economic concepts, legal principles and tools in competition law, and to provide insights into the numerous different issues that arise when applying competition law to market behaviour. Describing the economic rationale for the law, the chapters consider the application of EU and UK competition law to various business practices, including cartels, cooperation agreements, distribution agreements, licences of intellectual property rights, joint ventures, and mergers. The text has been updated to include the changes to UK law as a consequence of Brexit. It discusses for the first time the rise of powerful digital platforms and the quest for a suitable competition law and regulatory response to this phenomenon. It also considers the implications of the European Green Deal and the sustainability agenda for EU competition law and practice. The text incorporates extensive new legislation, case-law, decisional practice, guidelines and periodical literature at EU and UK level.
Chapter
12. The international dimension of competition law
This chapter explores the international dimension of competition law from two perspectives. It begins by describing the growth of international institutions involved in the development of competition law and policy, with particular reference to the International Competition Network (the ‘ICN’), the Organisation for Economic Cooperation and Development (the ‘OECD’) and the United Nations Conference on Trade and Development (‘UNCTAD’). It then looks at a more technical issue, which is the extent to which a sovereign state (or the European Union) can apply its competition law extraterritorially to conduct beyond its borders that has a harmful effect within it: this will briefly be considered from a theoretical perspective, after which the positions in the US, EU and UK will be examined in turn. The chapter concludes by briefly examining the extent to which a state may wish to block the application of a foreign competition law to its businesses.
Chapter
20. Mergers (1): introduction
This chapter briefly discusses the subject of merger control. Merger control is an important component of most, though not all, systems of competition law. Merger control has been under particular scrutiny in recent years, partly as a result of the rapid development of digital technologies and the emergence of powerful digital platforms. Separately there has been a certain backlash against the trend towards the globalisation of markets, and national governments, as well as the EU, have considered whether controls over the foreign acquisition of key industries are required, and whether the basic test of merger control – would a merger be harmful to competition? – should be supplemented by broader provisions enabling ‘the public interest’ to be taken into account. Against this background, the chapter begins by explaining what is meant by a ‘merger’ or ‘concentration’, the term used by the EU Merger Regulation (EUMR). It then proceeds to describe the different effects of mergers between independent firms from within and different production levels, the proliferation of systems of merger control, why firms merge, and the purpose of merger control. The final section of the chapter deals with how to design a system of merger control when a country decides, as a matter of policy, to adopt one.
Book
Richard Whish and David Bailey
Competition Law explains competition law and policy in the EU and UK. The intention is to provide the reader with an understanding of competition law and policy, to introduce the reader to key economic concepts, legal principles and tools in competition law, and to provide insights into the numerous different issues that arise when applying competition law to market behaviour. Describing the economic rationale for the law, the chapters consider the application of EU and UK competition law to various business practices, including cartels, cooperation agreements, exchanges of information, distribution agreements, licences of intellectual property rights, unilateral conduct, joint ventures, and mergers. The text has been updated to include changes to EU law on digital markets as a result of the Digital Services Act and the Digital Markets Act. It also discusses the changes to UK law as a consequence of the Digital Markets, Competition and Consumers Act 2024, including the creation of a regulatory scheme for digital platforms having a ‘strategic market status’ and amendments to the Competition Act 1998 and the Enterprise Act 2002. It also discusses the European Commission’s Guidelines on Vertical Restraints of 2022 and Horizontal Cooperation Guidelines of 2023, including its guidance on sustainability agreements. The text incorporates extensive new legislation, case-law, decisional practice, guidelines and periodical literature at EU and UK level.
