COMPETITION
COMMISSION News Release (21/09) issued by COI News Distribution
Service on 30 April 2009
The Competition
Commission (CC) and the Office of Fair Trading (OFT) have today
issued draft joint guidelines on how they assess the competitive
impact of mergers, and have called for comments on the document
from interested parties.
The publication revises and expands guidance material currently
contained in several publications issued separately by the two
authorities after the introduction of the Enterprise Act 2002.
This is the first time the OFT and the CC have worked together to
produce a single set of guidelines.1
The joint guidelines feature sections on the operation of the UK
merger regime; the questions the CC and OFT must consider when
reviewing mergers; how they define a 'relevant merger
situation'; the criteria and methodology used by the
authorities when assessing mergers; guidance on public interest
cases; and information on related matters such as interim measures
and remedies, directing where appropriate to other guidance
already published by the two authorities.
The draft policy has been developed in consultation with
government, the European Commission and other external parties
involved in merger inquiries or competition policy.
CC Chairman, Peter Freeman said:
The CC and the OFT play different roles in the merger control
regime, but there is still considerable scope for a consistent
approach. We are sure that parties involved in merger
investigations will appreciate this clear and comprehensive
explanation of how the system works, the similarities and
differences between our respective roles and how we assess
the
competitive effects of mergers.
The guidelines update the separate guidance published several
years ago by each authority when the Enterprise Act had just put
the new system in place-so they represent a revised rather than a
new approach, using the benefit of the experience we have gained
from investigations over the last few years. This also shows how
we and the OFT are working closely together to make the overall
system operate as transparently and smoothly as possible.
OFT Chief Executive, John Fingleton, said:
Businesses that are considering a merger rightly expect to be
dealing with a joined-up regime that minimises its burdens on
them, and this is all the more important when economic times are
tough. We have developed these draft guidelines, as part of a
wider programme of work with the Competition Commission, with this
goal very much in mind.
Comments are invited from interested parties and should be sent
by email to Tony Gooch (tony.gooch@cc.gsi.gov.uk) by 7 August
2009. A joint presentation on the new guidelines is also planned
in the near future-no date has been set but those interested in
attending should also contact Tony Gooch.
Notes for editors
1. Today's publication, Merger Assessment Guidelines, is
available at http://www.competition-commission.org.uk
or http://www.oft.gov.uk.
2. The OFT is the UK's combined competition and consumer
authority. In relation to merger activity, it obtains and reviews
information and, where necessary, refers any relevant mergers to
the CC for further investigation.
3. The CC is an independent public body, which carries out
investigations into mergers, markets, and the regulated industries.
4. The joint mergers assessment guidance will replace the
following OFT publications: Mergers-substantive assessment
guidance (OFT516), Guidance note revising Mergers-substantive
assessment guidance (OFT516a) and Revision to Mergers: substantive
assessment guidance-exceptions to the duty to refer markets of
insufficient importance (OFT 516b); and CC publication: Merger
References: Competition Commission Guidelines, CC2.
5. The OFT published new draft jurisdictional and procedural
guidance (March 2008): Mergers-jurisdictional and procedural guidance.
6. The CC published new guidance on remedies in merger cases
(November 2008): Merger Remedies, CC8.
7. The CC had launched a review of its own merger guidelines in
February 2008 but following the start of that process, the CC and
OFT decided to conduct a joint review of their respective
guidelines to ensure a consistent approach and ease the burden on
interested parties by ensuring their comments feed into a review
of UK merger assessment in general. See news release: http://www.competition-commission.org.uk/press_rel/
2008/apr/pdf/11-08.pdf.
8. Further information on the Review of Guidelines for Merger
References is at: http://www.competition-commission.org.uk/about_us/our_organisation/workstreams/analysis/
cc2_review.htm.
9. Enquiries should be directed to Rory Taylor at the CC on 020
7271 0242 (email rory.taylor@cc.gsi.gov.uk), or Corinne Gladstone
at the OFT on 020 7211 8899 (email corinne.gladstone@oft.gsi.gov.uk).
1The CC and OFT recently also published a Memorandum of
Understanding to promote greater clarity on their process for
reviewing merger, monopoly and market undertakings-see news
release http://www.oft.gov.uk/news/press/2009/15-09.