The German Federal Court of Justice reverses the Düsseldorf Court of Appeal’s decision ruling in favor of a merger in the hearing aids sector and addressing the issue of collective dominance test under German law (Phonak / GN ReSound)

Phonak/GN: Federal Court of Justice further specifies collective dominance test under German law* On April 20, 2010, the German Federal Court of Justice quashed the Düsseldorf Court of Appeal’s decision in Phonak/GN, which upheld the FCO’s merger prohibition of the acquisition of GN ReSound by Phonak, both active in hearing aids in Germany. The merger would have combined number two and four in the market, with aggregated market shares between 25-35%, and would have reduced the main players from five to four. The FCO’s prohibition was based on the strengthening of collective dominance among the top three. The parties abandoned the deal and unsuccessfully appealed the decision. They brought the case to Federal Court of Justice (the review of which is limited to legal grounds). The case

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  • Heinz & Zagrosek (Köln)

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Silke Heinz, The German Federal Court of Justice reverses the Düsseldorf Court of Appeal’s decision ruling in favor of a merger in the hearing aids sector and addressing the issue of collective dominance test under German law (Phonak / GN ReSound), 20 April 2010, e-Competitions April 2010, Art. N° 35661

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