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ILW308 Competition Law Merger Control Practice Questions Read Moritz Lorenz Chapter 5 Provide short answers Q1- What is the purpose of merger control? Q2- Explain which types of transaction qualify as a concentration under EU merger control law. Q3 - What is the substantive test applied under EU merger control law? Q4-Describe the foreclosure effects that may arise from a vertical concentration. Q5 - What are the potential restrictive effects of conglomerate mergers? Q6-List the categories of remedies that may be offered in a merger control procedure.
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Q1- The purpose of merger control is to prevent anti-competitive mergers and acquisitions that could harm consumer welfare and competition in the market.<br /><br />Q2- Under EU merger control law, a concentration occurs when two or more companies merge or one company acquires control over another company, resulting in a significant change in the market structure.<br /><br />Q3- The substantive test applied under EU merger control law is the "substantial lessening of competition" test. This test evaluates whether the proposed merger would significantly reduce competition in the relevant market.<br /><br />Q4- Vertical concentration may lead to foreclosure effects, where a company with significant market power in one market may use that power to restrict access to its products or inputs for competitors in another market.<br /><br />Q5- Conglomerate mergers may have potential restrictive effects, such as increased market power in unrelated markets, reduced incentives for innovation, and reduced consumer welfare.<br /><br />Q6- The categories of remedies that may be offered in a merger control procedure include structural remedies (such as divestitures), behavioral remedies (such as commitments to change business practices), and fines or penalties for non-compliance.
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