The EU Commission clears two mergers in the air and sea transport sector addressing the issue of pre-existing cooperation agreements (Iberia / British Airways - DFDS / Norfolk)

The power of pre-existing agreements* In two recent decisions, the Commission considered the impact of cooperation agreements that the notifying parties had entered into before the notified transaction and came to two different conclusions. In Iberia/British Airways (decision of 14 July 2010), the Commission was confronted with combined shares of 70-80% for time-sensitive passengers on two city pairs, London-Madrid and London-Barcelona. Despite these high shares, the Commission found that competition from mainly Easyjet (20-30% on London-Madrid and 30-40% on London-Barcelona) and to a lesser extent Air Europa and Ryanair on London-Madrid would provide sufficient competitive constraints on the combined firm. In addition, and perhaps more important, the parties had

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  • Skadden, Arps, Slate, Meagher & Flom (Brussels)

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Frederic Depoortere, The EU Commission clears two mergers in the air and sea transport sector addressing the issue of pre-existing cooperation agreements (Iberia / British Airways - DFDS / Norfolk), 14 July 2010, e-Competitions July 2010, Art. N° 35290

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