FCCA calls for expanding the obligation to notify mergers
According to the Finnish Competition and Consumer Authority (“FCCA”), the current national turnover thresholds allow harmful merges to escape scrutiny by the authority. The FCCA suggests that Finnish turnover thresholds be lowered and that the authority be granted the right to require a notification when the primary thresholds are not met.
Currently, the obligation to notify arises if the combined global turnover of the parties exceeds EUR 350 million, and the turnover of at least two of the parties resulting from Finland exceeds EUR 20 million. The FCCA recently conducted and published a study including an international comparison showing that the above-mentioned thresholds are considerably higher than in other Nordic countries and in EU member states of a similar size.
Based on its study, the FCCA proposes that the thresholds be lowered so that all mergers where the combined turnover of the parties resulting from Finland exceeds EUR 100 million, and the turnover of at least two of the parties resulting from Finland exceeds EUR 20 million, should be notified to the FCCA.
In addition to lowering the turnover thresholds, the FCCA suggests introducing a possibility of injunction to notify even below the primary turnover thresholds. Such a right is already in the toolbox of many European competition authorities, including Sweden and Norway. The FCCA proposes that the power to order a notification be limited to cases where the combined turnover of the parties resulting from Finland exceeds EUR 50 million.
The study was conducted at the request of the Ministry of Economic Affairs and Employment of Finland. We will keep you informed about any future developments, if e.g. the study leads to legislative amendments. Meanwhile, please find the press release of the FCCA (in English) here and the report (in Finnish)
here.
For more information please contact Päivi Tammilehto and Aarne Puisto.
