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Industrial Organisation 2022

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Question:

What rules might danish competition act merger control use to prohibit M&A? And what can they do to let a M&A go through anyway?

Author: Hjalmer Pedersen



Answer:

§ 12c (1) The Competition and Consumer Authority shall decide whether to approve or prohibit a merger. § 12c (2) A merger that will not significantly impede effective competition, in particular due to the creation or strengthening of a dominant position, shall be approved. A merger that will significantly impede effective competition, in particular due to the creation or strengthening of a dominant position, shall be prohibited. § 12c (7) The Competition and Consumer Authority may grant approval of a merger, based on a simplified procedure, if the Authority, based on the information submitted, finds that the merger will not give rise to any objections on the part of the Authority. § 12 e.-(1) The Competition and Consumer Authority may attach conditions to its approval of a merger under Section 12c(2) or issue orders to ensure, for example, that the undertakings involved comply with the commitments they have accepted vis-à-vis the Competition and Consumer Authority to eliminate any anti- competitive effects of the merger. (2) Such conditions or orders may require that the undertakings involved must › i) dispose of an undertaking, parts of an undertaking, assets or other proprietary interests; › ii) grant third party access; or › iii) take other measures capable of promoting effective competition. (3) The Competition and Consumer Authority may, after its approval of a merger, issue the orders that are necessary to ensure due and correct fulfilment of the commitments made to the Authority by the undertakings involved according to subsection (1) above.


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