By:
After soliciting information earlier this year, the UK’s Competition and Markets Authority (CMA) has unveiled its planned modifications to the merger review process. The primary focus of these changes lies in the Phase 2 process, primarily applied in formal reviews where the CMA anticipates a substantial reduction in competition. As of the current date, out of the 72 transactions qualifying for investigations under the Enterprise Act 2002 since January 1, 2022, 17 (24%) have been referred to Phase 2. This percentage is notably higher compared to the EU, where around 10% of non-simplified merger reviews proceed to Phase 2.
The proposed adjustments aim to enhance the interactivity of the Phase 2 process, intending to expedite the formulation of acceptable remedy proposals. These changes respond to recent criticism of the CMA’s merger enforcement approach and align with efforts to enhance the efficacy of the UK merger review process. The proposed amendments are open for consultation until January 8, 2024.
The revision of Phase 2 procedures by the CMA is driven by the post-Brexit landscape. With the UK’s departure from the EU, global deals impacting UK competition, previously overseen by the European Commission under the “one-stop-shop” principle, are now frequently subject to parallel reviews by the CMA. This has resulted in divergent outcomes concerning clearance or acceptable remedies at an unexpectedly high frequency. The CMA’s expanded responsibilities have intensified scrutiny on its merger enforcement approach, revealing discrepancies between the EU and UK merger processes. Some of the CMA’s proposals aim to align the UK process more closely with that of the European Commission, indicating a potential key driver behind these changes is to limit procedural divergence…
Featured News
Nvidia and Microsoft Sued for Allegedly Undercutting AI Technology Patent Prices
Sep 5, 2024 by
CPI
White & Case Strengthens Antitrust and M&A Practices with New Partner Additions
Sep 5, 2024 by
CPI
Federal Judge Dismisses Antitrust Lawyers’ Fee Demand Over JetBlue-Spirit Deal
Sep 5, 2024 by
CPI
Boston Landlords Named as US Sues RealPage Over Alleged Rent-Inflating Practices
Sep 5, 2024 by
CPI
Judge to Weigh Landmark NCAA Settlement Proposal in Antitrust Lawsuit
Sep 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
CPI
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
CPI
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
CPI
The Cost of Making COFECE Disappear
Sep 3, 2024 by
CPI