COMPETITION
COMMISSION News Release (36/08) issued by COI News Distribution
Service. 26 November 2008
The Competition
Commission (CC) is today publishing new guidelines which explain
its approach to remedies, such as divestiture, prohibition and
behavioural measures, where it decides that mergers are likely to
lead to a substantial lessening of competition (SLC).
The guidelines provide a single source of guidance on merger
remedies and emphasize measures that are effective and yet
minimize burdens on customers, suppliers and merger parties. The
new guidelines also cover areas such as intellectual property
remedies and behavioural remedies which were not covered in detail
in existing guidance.
The document is the latest in a series of guidance published by
the CC under the Enterprise Act. The guidelines are available on
the CC's website http://www.competition-commission.org.uk.
The publication follows a period of public consultation on draft
proposals which started in May this year. In general, respondents
to the consultation were supportive of our approach to choice of
remedies. We have, however, modified the draft proposals in a
number of areas to clarify our guidance in response to the
consultation. We have also added more references to previous CC
cases. Our response to the consultation is also published today on
the CC's website.
Chairman of the CC, Peter Freeman said:
These new guidelines are part of the CC's commitment to a
transparent and consistent approach to the UK merger control
regime. The document takes account of the CC's experience of
implementing remedies in recent years under the Enterprise Act and
research into the outcome of remedies. Through this guidance, we
are seeking to improve the effectiveness of our measures and
reduce burdens on business.
We are very grateful for the way people have responded to the
consultation. This has contributed significantly to the clarity of
the final guidance.
Notes for editors
1. If a CC inquiry concludes that a merger is likely to result in
an SLC, then the CC has to decide what actions it or other bodies
should take to remedy, mitigate or prevent the SLC or any adverse
effects resulting from it. These actions can take a variety of
forms including prohibition, divestiture or behavioural measures
such as rights of access to facilities and price caps. When
selecting remedies, the CC is required by the Enterprise Act to
'achieve as comprehensive a solution as is reasonable and
practicable to the substantial lessening of competition and any
adverse effects' and may also take account of any relevant
customer benefits resulting from the merger.
2. The CC implemented its first remedies under the Enterprise Act
in 2004. In total, the CC has required remedies in 21 merger
inquiries to date since the introduction of the Enterprise Act and
has chosen divestiture or prohibition in 17 of these cases.
3. The new guidelines supersede the CC's existing guidance
on divestiture remedies (CC8), existing guidance on interim
measures and guidelines on remedial measures in the CC's
general merger guidance (CC2). The approach in the new guidelines
is consistent with these previous documents but has been clarified
and extended. The new guidelines will apply to all merger cases
where the remedies notice is published after the date of
publication of this new guidance.
4. The new guidelines may be accessed at http://www.competition-commission.org.uk/rep_pub/ consultations/index.htm.
5. In parallel with the consultation on merger remedies, the CC
is also reviewing its guidelines for the assessment and analysis
of mergers in a joint exercise with the Office of Fair Trading.
This aims to produce joint guidance for consultation in 2009.
6. Enquiries should be directed to Rory Taylor on 020 7271 0242
(rory.taylor@cc.gsi. gov.uk).