Relationships between JV and parent companies in Merger control and Antitrust

Introduction

Jacques Buhart

Companies generally prefer to be subject to the Merger Regulation because it provides much greater legal certainty.

Joint ventures can take many different forms of cooperation and are an important tool in business life. Out of the nearly 400 merger notifications processed in Brussels each year, just under a hundred correspond to joint control cases. Due to the calculation of thresholds for joint ventures, parent companies are often required to notify a concentration in many countries.

Today we are going to look at the qualification of joint ventures. The question is to know in which situations they can be of a concentrative nature, or on the contrary fall under Article 101 TFEU, i.e. cartels. Companies generally prefer to be subject to the Merger Regulation because it provides much greater legal certainty. Indeed, the authorisation given is irrevocable and unlimited. Where long-term capital investment is considerable, this is an essential element for the success of the joint venture. In the area of Article 101, companies can only request guidance letters on matters of general interest not yet decided by the Commission, but this practice remains unapplied.