Minority power : EU merger control and the acquisition of minority shareholdings

The acquisition of non-controlling minority shareholdings can harm competition. This is demonstrated both by economic theory and the experience of national competition authorities inside and outside the EU. The Commission's White Paper proposes to complement the Merger Regulation with a light system for reviewing the acquisition of minority shareholdings. This will focus on transactions that may be prima facie problematic from a competition point of view, i.e those giving a certain degree of influence over a competitor or a vertically related company. Such a system will establish a one-stop shop for the control of minority shareholdings, without subjecting all transactions to a burdensome notification system. The proposed reform would make EU merger control more comprehensive by providing a targeted toolkit against all types of harm that company tie-ups may bring to competition and consumers.