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CO, Concentrations of undertakings Art 4 CartA - Coggle Diagram
CO
Concentrations of undertakings Art 4 CartA
Scope: Concentrations of undertakings harmful to competition
Mergers (4 iii)
Merger through absorption
Consolidation merger
Acquisition of control (4 iii)
anything that gives decisive influence (key management and corporate policy) on another undertaking's activities or parts thereof
Joint venture (2 MCO -> 4 iii b CartA) is an acquisition of control
Notification criteria: (to the Competition Commission)
(Art 9 CartA) Turnover threshold from previous year of concerned undertakings together
Or Global turnover >2 Bil. Chf
Either Swiss turnover >500 Mil. Chf
and at least two concerned undertakings a turnover in Switzerland of >100 Mil. Chf
Undertakings concerned:
Merger: the merging undertakings
Acquisition of control: new controlling undertaking
Separate rules for banks
Notification also if undertaking was previously deemed to be dominant in a relevant market (up/downstream or neighboring market)
(32 CartA) If notification is required, CC will decide within a month (no implementation within a month) if a investigation will be opened (no implementation until results are out) – exception for compelling public reasons (art 11 & 36 CartA: same conditions as art 8)
Intervention:
Notified undertakings will be investigated if they create or strengthen a dominant position
Special cases
Intervention for an oligopoly based on (10iv CartA):
Stable incentives for collusion
Market share
Are there strong interdependencies?
High barriers to market entry
Weak competition from substitutes or foreign firms
Market position of up/downstream firms weak
Are the goods changing rapidly (high innovation in industry)
Competitive position
Concentrations in separated markets
Usually do not affect market position of parties involved so no intervention
Failing company defence
No causality if one company is about to exit the market (economically efficient as it preserves jobs)
Intervention criteria (10 CartA)
qualified market dominance
Strengthens or creates a dominant position (in a relevant market)
Which eliminates effective competion
and does not improve competition in another market (has to outweigh the harmful effects)
Market characteristsics
High barriers to market entry
Weak competition from substitutes, foreign firms, and up/downstream firms weak
Mature market (low product innovation)
Consequences
CC may prohibit a concentration
Special authorization can still be sought from the federal council (36i)
May authorize subject to conditions and obligations
Will lead to amicable settlement (29 CartA)