Economics at your fingertips  

The Control of Mergers and Joint Ventures

Nick Gardner

Chapter 6 in A Guide to United Kingdom and European Union Competition Policy, 1996, pp 119-142 from Palgrave Macmillan

Abstract: Abstract The operation of merger policy depends less upon the enabling legislation and its investigatory procedures than upon the presumption which is adopted concerning the general effect of mergers on the public interest. As noted in section C of Chapter 1, a balance has to be struck between expected losses of allocative efficiency resulting from the reduction of competition and expected gains in productive efficiency; and different authorities may adopt different presumptions in that respect. In an early case the European Court of Justice has ruled that an increase in the market share of a dominant undertaking can on its own constitute a breach of the Treaty of Rome (Continental Can 1973). European Union merger regulation is not now confined to dominant undertakings, but it does not seek to prevent mergers unless they impede effective competition. The regulation stipulates that account is to be taken of technical and economic progress which is to the consumers’ advantage, but only if no obstacle to competition is created. In practice, however, efficiency gains are often balanced against losses of competition. The commission is, moreover, enjoined to place its appraisal within the general framework of the fundamental objectives referred to in Article 2 of the Treaty, including that of strengthening the Community’s economic and social cohesion (Rehearsal 13 to Regulation 4064/89 examined by the Court of First Instance in Perrier Union 1992)

Keywords: Market Share; Public Interest; Fair Trading; Joint Venturis; Competition Policy (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This item can be ordered from

DOI: 10.1007/978-1-349-13672-8_6

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-11-29
Handle: RePEc:pal:palchp:978-1-349-13672-8_6