Global Competition Law is primarly a practitioner's guide presenting the most salient aspects of the major competition laws country by country, giving an overview of their structure and most charasteristic elements.
Global Competition Law also provides insight into possible future developments in the field.

Global Competition Law

Pursuant to Section 15(1) of the Act, a concentration is defined as:
- the merging of two or more independent undertakings in order to become a single market player,
- the joining of one undertaking to another;
- the situation where one or more legal or natural persons who already have a decisive influence over another undertaking or other undertakings acquire part or all of the fixed assets of an …

Concept of concentration

Merger control is regulated under Sections 15-17 of the Competition Act, lastly amended on 12 May 2016 in order to simplify the notification process and increase the amount of penalities.

Context

Pursuant to Section 15(1) of the Act, a concentration is defined as:

- the merging of two or more independent undertakings in order to become a single market player,

- the joining of one undertaking to another;

- the situation where one or more legal or natural persons who already have a decisive influence over another undertaking or other undertakings acquire part or all of the fixed assets of another undertaking or other undertakings or the right to use such, or a direct or indirect decisive influence over another undertaking or other undertakings ; an acquisition of assets or of the right to use such assets is considered to be a merger if the acquisition of the assets or of the right to use such assets increase the market share of the acquirer and the usage rights in any relevant market;

- the situation where two or several natural persons jointly or a single natural person simultaneously acquire a part or all of the assets of two or several undertakings or obtain the right to use such assets, or a direct or indirect decisive influence over two or several undertakings.

Before the 12 May 2016 amendments, Section 15(2) of the Act provided that a concentration had to be notified to the Competition Council where the participants’ combined turnover during the previous financial year was not less than EUR 35 million and the total market share of the participants in the merger in the particular market exceeded 40%. The 2016 amendments simplified the criteria for notification by substituting a turnover threshold to the market share threshold. From now on, a merger must be notified where the combined turnover in Latvia of the participants in the merger in the last financial year has been not less than EUR 30 million, and the turnover in Latvia of at least two participants in the merger in the last financial year has been not less than EUR 1.5 million for each.

Even where those thresholds are not reached the Competition Council may, within 12 months following the implementation of a merger, request that the parties file a notification if both of the following conditions are met:

1) the merger is taking place in the relevant market where the participants in the merger operate, and their combined market share in the particular market exceeds 40%;

2) there is cause for suspicion that the merger might result in or strengthen a dominant position, or the competition in the relevant market might be significantly reduced (Section 12(2.1)).

Thresholds

  According to Section 16(3), mergers which create or strengthen a dominant position or which significantly prevent, restrict or distort competition in a market are prohibited.

Global Competition Law

463. Concept of concentration

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Les notions juridiques connexes

463. Concept of concentration

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise