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OFT and Competition Commission launch review to issue joint merger guidelines

53/08    22 April 2008

The Competition Commission (CC) and the OFT are to work together on a joint review of their respective guidelines for substantive merger analysis and assessment.

The two organisations aim to produce a single set of guidelines, combining revised guidance material currently contained in two principal publications - Merger references: Competition Commission Guidelines, CC2 (April 2003), and the OFT's Mergers: substantive assessment guidance (May 2003), as well as two subsequent revisions to the OFT's guidance issued in 2004 and 2007. 

The joint project will now incorporate and replace the recently announced review of merger guidelines by the CC alone (see the CC news release). All submissions received following the launch of the CC review last February will be taken fully into account in conducting the joint review.

John Fingleton, OFT Chief Executive, said: 

'Our two authorities are partners in UK merger control, with a shared analytical approach to substantive issues. With five years practical experience of the new regime, it is only right that we prepare joint guidelines to reflect this. While presenting these commonalities, we will at the same time highlight any differences of emphasis given our roles.' 

Peter Freeman, Competition Commission Chairman, said:

'Joint guidelines will provide clarity for merger parties and promote consistency of approach. We have already received many helpful comments from interested parties in response to our call for submissions on the CC guidelines. We encourage interested parties to stay in touch - it's a genuinely open process and we would always welcome their views.'

This exercise is separate from the OFT's recently announced consultation on revised jurisdictional and procedural guidance applicable to merger cases before the OFT. The CC and OFT aim to issue draft revised guidelines for comment in a formal consultation process by the end of 2008, with a view to publishing the joint guidelines in summer 2009. Following the first round of initial consultation, organisations or individuals may wish to comment further, in the light of the decision to produce joint CC/OFT guidelines. The OFT and CC shall together be issuing working papers on key issues, on which any external party will be welcome to comment. Roundtable or other public discussion sessions may also be convened.

Comments or inquiries should be addressed to Tony Gooch either by email at tony.gooch@cc.gsi.gov.uk or by telephone on 020 7271 0151.

NOTES

1.  Following the passage of the Enterprise Act 2002, the OFT and CC published several guidance documents. The OFT's substantive guidance sets out our substantive approach to merger references to the CC, and CC2 sets out the CC's approach to the questions to be answered in respect of such references.

2. The text of CC2 is available on the Competition Commission website. 

3. The text of Mergers: substantive assessment guidance (pdf 234 kb) is available on this website. The two revisions to this guidance relate to the test for reference following  the February 2004 judgment of the Court of Appeal in the IBA Health case, and the markets of insufficient importance (de minimis) exception to reference, respectively. See the guidance note revising 'Mergers: substantive assessment guidance' (pdf 91 kb), and revision to Mergers: substantive assessment guidance - Exception to the the duty to refer: markets of insufficient importance (pdf 123 kb).
  
4. Further information on the review of guidelines for merger references is available on the Competition Commission website and in the mergers section on this website.

5. Enquiries should be directed to Rory Taylor on 020 7271 0242 or by email to rory.taylor@cc.gsi.gov.uk, or the OFT Press office.

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