OFT consultation on unimportant mergers

OFT consultation (23 pages, PDF) on a proposed change of guidance aimed at increasing the number of cases in which the OFT relies on the statutory exception to the duty to refer mergers to the Competition Commission under the Enterprise Act 2003 because the market is of "insufficient importance" (even though there might be a substantial lessening of competition).

The OFT proposes to set a “guideline threshold market size figure of £10 million beyond which the exception will generally not apply”. This figure is derived from a “highly stylised and simplified quantitative example” involving an assumption about the price effects of an anti-competitive merger.

For mergers below the proposed threshold, the proposed guidance points to cases involving “very high market concentration and low entry prospects” or “evidence of coordination” as likely to fall outside the exception.

Responses by Friday 10 August 2007.

For further information or advice please contact Franck Latrémolière.

Filed under Merger control, OFT.

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