OFT/CC Joint Review of Substantive Merger Guidelines

Following a year-long collaborative review of their respective guidelines for the assessment and analysis of mergers, the Competition Commission (CC) and the Office of Fair Trading (OFT) have jointly published a single set of draft guidelines for a public consultation:

Merger Assessment Guidelines: Consultation Document – April 2009

Background

The two Authorities began work in April 2008 to produce a single set of guidelines, combining revised and expanded guidance material currently contained in several publications::

Process

The joint review subsumed a stand-alone review by the CC of its merger guidelines (CC2). In response to an invitation for initial submissions, some 20 were received from external economists, lawyers, businesses and other involved in merger inquiries or interested in competition policy. These made important contributions to the joint review and are available at: Submissions: Responses to initial call for comments on CC2.

The project has been taken forward by a joint OFT/CC working party composed of senior CC and OFT staff, under the joint chairmanship of the CC Chairman (Peter Freeman) and the OFT Senior Director, Mergers (formerly Simon Pritchard; now Amelia Fletcher).
                       
An internal discussion group of economists has helped identify and resolve analytical issues. Its membership includes economists from the OFT and the CC, Peter Davis (CC Deputy Chairman), Michael Waterson (CC member), Bruce Lyons (CC member), and John Collings (CC member).

Economics Round Tables were organized on 2 October 2008 as part of the joint merger guidelines review. Two sessions were held at which prominent external economists, CC/OFR staff and CC members discussed non-horizontal effects and coordinated effects (see links below to the transcripts of these sessions).

The draft guidelines have also taken account of comments of others within the Authorities, including CC members and OFT board members, as well as contributions from other Government departments and the European Commission.

The final decisions on the final revised text, following the public consultation, rest with the OFT and the CC.

Contacts

(OFT) Assistant Director, Mergers: Chris Walters: Chris.Walters@oft.gsi.gov.uk

(CC) Head of Policy Analysis: Nicola Mazzarotto: Nicola.Mazzarotto@cc.gsi.gov.uk

General contact point: Tony Gooch; Tony.Gooch@cc.gsi.gov.uk; Tel: 020 7271 0151.

Documents and Announcements

The OFT and CC websites each feature this home page dedicated to the project, as well as the associated documents and announcements.

Merger References Guidelines (CC2)

OFT Mergers: Substantive Assessment Guidance (OFT 516)

OFT Guidance Note revising Mergers: Substantive Assessment Guidance (OFT 516a)

OFT Revision to Mergers: Substantive Assessment Guidance - Exception to the duty to refer: markets of insufficient importance (OFT 516b)

Submissions and Consultations

Responses to initial call for comments on CC2

Economics roundtable: Note by the CC

A roundtable to discuss: Non-Horizontal Effects - How far should guidelines go?

A roundtable to discuss: Co-ordinated effects - What is the right analytical threshold?

Merger Assessment Guidelines: Consultation Document – April 2009

Other OFT and CC merger guidance consultation

The OFT has separately issued a consultation document on revised and expanded guidance covering merger control jurisdiction and procedure.  Further details are available at: http://www.oft.gov.uk/advice_and_resources/publications/guidance/mergers/oft526.

In November 2008 the CC published “Merger Remedies: Competition Commission Guidelines” (CC8). See:
CC8 Merger Remedies: Competition Commission Guidelines (pdf, 124kb).