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

Since 1 January 2018, the Act applies to concentrations where the combined aggregate income of the undertakings concerned in the business year preceding the concentration is more than EUR 20,000,000 and the aggregate income of each of at least two undertakings concerned in the business year preceding concentration is more than EUR 2,000,000.
Two or more transactions, concluded over a period of two …

Thresholds

Mergers are governed by Chapter 2, Section 3 of the Lithuanian Competition Act, which was significantly amended on December 2017. Only concentrations meeting certain defined thresholds are considered to fall within the scope of the Act.

Context

According to Section 3(5) of the Competition Act, a concentration is deemed to arise where:

- two or more previously independent undertakings merge into a new undertaking, or are joined to an undertaking which continues its operations, or

- one and the same natural person or persons already controlling one or more undertakings, or one or more undertakings, by agreement, jointly set up a new undertaking (except the cases when the new economic entity does not perform the functions of an independent economic entity) or gain control over another undertaking by acquiring an enterprise or part thereof, all or part of the assets of the undertaking, shares or other securities, voting rights, by contract or by any other means. 

Control results from any rights arising from laws or transactions which entitle a legal or natural person to exert a decisive influence on the activity of an economic entity, including: 1) the right of ownership to all or part of the assets of the economic entity or the right to use all or part of the economic entity's assets; 2) other rights which allow the exercise of a decisive influence on the decisions of the bodies of the economic entity or the composition of its personnel. 

Following Competition Council Resolution No 45 of 27 April 2000 on “approval of the procedure for submission and examination of notification on concentration and of calculation of aggregate turnover” as amended by Resolution No 1S-4 of 13 January 2005, a joint venture which has all the functions of an autonomous economic entity, is engaged in regular operations, and has sufficient financial and other resources to perform its activity on a lasting basis is considered as a fully-functioning joint venture. A fully-functioning joint venture is considered as an undertaking participating in a concentration (point 6.1.2 of the Resolution).

Concept of concentration

Since 1 January 2018, the Act applies to concentrations where the combined aggregate income of the undertakings concerned in the business year preceding the concentration is more than EUR 20,000,000 and the aggregate income of each of at least two undertakings concerned in the business year preceding concentration is more than EUR 2,000,000.

Two or more transactions, concluded over a period of two years between the same persons or undertakings, are to be treated as a single concentration resulting from the last transaction.

Indications on aggregate turnover calculation can be found in Resolution No 45.

According to Section 12, the concentration must not lead to the creation or strengthening of a dominant position or a substantial restriction of competition in a relevant market.

Global Competition Law

491. Thresholds

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Les notions juridiques connexes

491. Thresholds

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