Dáil Éireann debate -
Thursday, 8 May 2003

Vol. 566 No. 2

Written Answers. - Competition Authority.

Phil Hogan

Question:

16 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of merger transactions which have been notified to the Competition Authority since the merger provisions of the Competition Act 2002 took effect on 1 January 2003; if she will give a comparison of the amount of referrals since 1 January 2003 with the numbers for an equivalent period for each of the previous three years; and if she will make a statement on the matter. [12245/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

The number of mergers notified to the authority in the first four months of this year was ten. This compares with 28 notifications in the same period last year, 30 in 2001, and 43 in 2000.

The reduction in notifiable mergers is due to a number of factors. First, there has been a significant downturn in world-wide merger activity since 2000.

Second, the notification threshold was increased from about €25 million, IR£20 million, in annual turnover to €40 million with effect from 1 January 2003 under the 2002 Competition Act. This was the first increase in almost ten years and it removes the burden of notification and associated costs from mergers involving smaller companies which are less likely to impact adversely on competition.

Another change to merger law which I introduced on 1 January 2003 was also aimed at removing the burden of notification from parties to mergers which do not impact on national markets. The new provision specifies that notification is only required where at least two of the parties to a merger carry on business in Ireland. In the past many mergers which had no impact in national markets were notified as the previous merger control regime required notification where only one of the parties to a merger carried on business in the State.