The EU Court of Justice decides EU merger control rules can only apply to joint control transactions if the resulting entity is a ‘full-function’ joint venture (Austria Asphalt)

On September 7, 2017, the European Court of Justice (ECJ) decided that, where joint control is acquired over a new or existing undertaking (or parts of an undertaking), that transaction can only fall within the scope of the EU Merger Regulation (EUMR) where the resulting entity will be ‘full-function.’ Under the current approach to ‘full-functionality’ this has significant negative implications for the certainty, timeliness and efficacy of the competition law treatment of joint ventures in the EU. Joint Ventures Under EU Competition Law The term ‘joint venture’ can be used to describe a very wide range of commercial arrangements. Joint ventures of all types are very common between competitors. They can allow sharing of costs, removal of overcapacity, sharing of risks on R&D projects,

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Authors

  • Shearman & Sterling (London)
  • Shearman & Sterling (London)

Quotation

James Webber, George Milton, The EU Court of Justice decides EU merger control rules can only apply to joint control transactions if the resulting entity is a ‘full-function’ joint venture (Austria Asphalt), 7 September 2017, e-Competitions Bulletin September 2017, Art. N° 84860

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