Merger control - Criteria for incompatibility
4 important questions on Merger control - Criteria for incompatibility
According to art 2 para 3 Merger Reg, what are the criteria for incompatibility?
- declared incompatible with the common market
- SIEC test:
- requirement: market definition
What Is the SIEC test and what are relevant factors?
- Significant impediment of effective competition
- economic power; financial power; alternatives available to suppliers and users
- consideratie of horizontal, vertical an conglomerate effects
General Court case T-342/99, judgement of 6 June 2002, Airtours. What were the facts of the case?
- Airtours – British tour operator, organising journeys and offering package tours – intends to acquire all the shares of First Choice (also British tour operator)
- notification to COM
- decision of COM: Merger incompatible with common market due to creation of a collective dominant position
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General Court case T-342/99, judgement of 6 June 2002, Airtours. What was the decision of the General Court?
- Requirement for creating a collective dominant position:
- each member of the dominant oligopoly must have the possibility to get to know how the other members are behaving -> transparent market
- possibility of tacit coordination must be sustainable over time -> counter-measures in case of departure
- proof that the foreseeable reaction of current and future competitors and consumers would not jeopardise the results expected from the common policy
- in-depth investigation of COM required
- requirement of clear evidence
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