Changes in merger control provisions – this is the main topic of the EU Merger Working Group meeting held by UOKiK. The workshops accompanying this event are also relating to the issue of effective handling  merger and acquisition cases

A video record of the debate is available at: www.uokik.gov.pl

The EU Merger Working Group is composed of antimonopoly authorities of EU member states and the European Commission. This year UOKiK hosts the Group’s meeting.

- Mergers and acquisitions of undertakings are a positive trend. They lead to a better allocation of capital, strengthening the capacity of entrepreneurs; they may support the technical development, result in enhancing the quality and accesibility of goods and services as well as decrease in prices for consumers. For many companies, especially during the economic crisis, it is both a chance and necessity to put forward their activity. Following out previous experiences, negative impacts of concentrations only in very few cases make competition protection authorities intervene with imposing a prohibition, or a conditional consent – stated Małgorzata Krasnodębska-Tomkiel, the President of UOKiK.

The meeting is accompanied by workshops entitled New Challenges in Merger Control in Europe, attended by representatives of European antimonopoly authorities, the European Commission, entrepreneurs and legal practitioners.

Amendments to the EU law

The main focus of the meeting and the workshops were changes in merger control laws, proposed in March by the European Commission. They were aimed at enhancing the merger control process, adjusting it to current market trends and accelarating the time limit for issuing decisions.

These changes assume, among others, increasing the number of decisions issued under the simplified procedure. Thus cases will be considered within only 25 working days. Another improvement to the EU regulations is changing the case referral system between the European Commission and antimonopoly authorities of EU member states – all to make sure that a given transaction will be considered by the relevant authority in the possibly shortest time limit.  Another issue relates to the control of minority shareholdings. In some cases an undertaking possessing even insignificant number of competitor’s stocks and shares may affect their decisions in a way which negatively influences competition and consumers alike. For this reason it is suggested that merger control be expanded to fight the results of previously unknown connections.

Amendment to the Polish Act

It is worth noting that merger control system in Poland is going to be improved. The draft amendment to the Act on competition and consumer protection adopted in July by the Council of Ministers assumes, inter alia, introduction of a two-stage proceedings in merger and acquisition cases (reflecting the concept used by the EU). This will allow for a quicker conclusion of proceedings, in particular in less complex cases. Another proposed change is the so-called competition concern, i.e. institution allowing for familiarising undertakings with charges against the intended transaction and introducing necessary modifications prior to issuing a decistion. Furthermore, UOKiK included in the draft amendment a provision setting forth that parties to proceedings concluded with a conditional consent would be allowed to move for keeping classified the part of a decision containing the deadline for fulfilling the imposed condition.

A video record of the debate is available at: www.uokik.gov.pl.

Additional information for media:
Małgorzata Cieloch, Spokesperson of UOKiK
Department of International Relations and Communication
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Tel.: +48 22 827 28 92, 55 60 314, 55 60 430
Fax: +48 22 826 11 86
E-mail: [SCODE]bWFsZ29yemF0YS5jaWVsb2NoQHVva2lrLmdvdi5wbA==[ECODE]