Posted by Social Science Research Network
Laura McCaskill (Independent)
Abstract: In 2001, the proposed $42 billion merger between US companies GE and Honeywell was precluded by the European Union after receiving a stamp of approval from the Department of Justice and 11 other jurisdictions. This case provided startling evidence that the jurisdiction of European Union antitrust regulators is certainly capable of impacting business on this side of the Atlantic. This decision made it clear that US attorneys advising US companies and structuring M&A transactions need to be familiar with the antitrust laws of the European Union.
The antitrust principles of the European Union are set out in the TFEU and merger control is governed by Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings. In the European Union, merger control is divided between the European Commission and the Member States. The European Commission and the Member States do not have concurrent power to handle merger control. The Merger Regulation aims to create a “one-stop shop system” by providing the European Commission with jurisdiction to review mergers that transcend national borders. The jurisdiction of the European Commission applies to all concentrations with a community dimension, irrespective of where the companies are registered or where their headquarters or p…