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Suggestions for improving the EC Merger Regulation - EU Committee

09 April 2002, 14:39 CET


Brussels, April 9, 2002 - The EU Committee of the American Chamber of Commerce compliments the European Commission for its timely Green Paper on the review of the Merger Regulation (1), containing innovative and interesting proposals, and has made a number of suggestions to improve the EC Merger Regulation (2).

The EU Committee is a strong believer in the one-stop-shop principle established by the Merger Regulation. While continuing to support an extension of the Commission's jurisdiction through a reduction of the turnover thresholds contained in Article 1(2), it welcomes the replacement of Article 1(3) by a provision whereby, if a concentration meets the notification thresholds of at least three Member States, the parties can opt for notification to the Commission. For the same reason, the EU Committee opposes the Commission's proposal to enhance the possibility of referrals to Member States.

As the voice of American business in Europe, the EU Committee supports the Commission's objectives of ensuring that the Merger Regulation is implemented on an economically sound basis, which facilitates constructive coordination with the US and other jurisdictions. The EU Committee welcomes the Commission's invitation to examine the fundamental test and rationales on which merger control is based. These issues deserve extended discussion before a decision can be reached as to whether to abandon and replace the current dominance test with a substantial lessening of competition test. In the meantime, the Commission should interpret and implement the Merger Regulation in a way that encourages, rather than discourages, efficiency-enhancing mergers.

The EU Committee supports the Commission's proposal to offer notifying parties greater flexibility with respect to the time period in which they must notify concentrations and endorses the suggestion that parties be allowed to submit notifications prior to the conclusion of a binding agreement. Greater flexibility in the procedure for submitting commitments is also a welcome improvement and, in this regard, the EU Committee has elaborated a number of suggestions aimed at ameliorating the proposals contained in the Green Paper.

Unfortunately, the Green Paper does not include adequate proposals for how companies' rights are protected in the present system of due process and checks and balances. These checks and balances should be strengthened to compensate for the fact that the Commission does not have to submit its conclusions in a case to an independent decision-making authority. The EU Committee also calls for a public consultation on the reform of the current judicial review system for merger cases.

Mr. Gerwin Van Gerven, Vice-Chair of the EU Committee's Competition Subcommittee, says: "The EU Committee compliments the European Commission for its innovative and interesting proposals and welcomes reforms that ease the burden on merging companies and increase their legal certainty."



1) Green Paper on the Review of Council Regulation (EEC) No 4064/89, COM(2001) 745/6, December 11, 2001.
2) Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings (O.J. L 395/1, December 30, 1989).

The EU Committee of the American Chamber of Commerce is the key organization representing the views of some 132 European companies of American parentage to the EU institutions.

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