Finland Global merger control handbook – update - DLA Piper
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Finland Global merger control handbook – update APRIL 2020 Merger control legislation changes since 1 July 2018 Several updates to the merger control rules entered into force on 17 June 2019. First, time limits for merger control proceedings are now counted as working days instead of months. This extends the time limits for FCCA to assess mergers. The processing time for phase I is now 23 working days (earlier 1 month), and for phase II it is 69 working days (earlier 3 months). The Market Court can extend the time limits up to 46 working days (earlier 2 months). Secondly, in relation to the FCCA’s power to conduct inspections in the business premises, storage facilities, land and means of transport controlled by a company involved in a merger, the FCCA has now been given the right to take temporary copies of the material under investigation and to continue the inspection in its own premises. This new right does not affect the right of the company or its attorney to be present during the inspection. Landmark merger control cases since 1 July 2018 For the first time in Finland, a merger was prohibited on 17 February 2020. The Market Court prohibited Kesko’s acquisition of Heinon Tukku (case MAO:50/20). The Market Court found that Kesko’s acquisition of Heinon Tukku would have harmed competition in the market for broadline distribution of groceries to foodservice customers. According to the Market Court, the prohibition of the merger was the only way to safeguard effective competition in this case, as the behavioural remedies offered by Kesko did not adequately address the identified harm to competition. On 18 March 2020, Kesko announced that it will not appeal the Market Court decision and the prohibition became legally binding. Web link to the national competition authority Finnish Competition and Consumer Authority: https://www.kkv.fi
Transcript of Finland Global merger control handbook – update - DLA Piper
Finland Global merger control handbook – updateAPRIL 2020
Merger control legislation changes since 1 July 2018 Several updates to the merger control rules entered into force on 17 June 2019.
First, time limits for merger control proceedings are now counted as working days instead of months. This extends the time limits for FCCA to assess mergers. The processing time for phase I is now 23 working days (earlier 1 month), and for phase II it is 69 working days (earlier 3 months). The Market Court can extend the time limits up to 46 working days (earlier 2 months).
Secondly, in relation to the FCCA’s power to conduct inspections in the business premises, storage facilities, land and means of transport controlled by a company involved in a merger, the FCCA has now been given the right to take temporary copies of the material under investigation and to continue the inspection in its own premises. This new right does not affect the right of the company or its attorney to be present during the inspection.
Landmark merger control cases since 1 July 2018 For the first time in Finland, a merger was prohibited on 17 February 2020. The Market Court prohibited Kesko’s acquisition of Heinon Tukku (case MAO:50/20). The Market Court found that Kesko’s acquisition of Heinon Tukku would have harmed competition in the market for broadline distribution of groceries to foodservice customers. According to the Market Court, the prohibition of the merger was the only way to safeguard effective competition in this case, as the behavioural remedies offered by Kesko did not adequately address the identified harm to competition. On 18 March 2020, Kesko announced that it will not appeal the Market Court decision and the prohibition became legally binding.
Web link to the national competition authorityFinnish Competition and Consumer Authority: https://www.kkv.fi
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