Dáil Éireann Debate, Thursday - 27 April 2023
239. Deputy Brendan Griffin asked the Minister for Enterprise, Trade and Employment the number of mergers and acquisitions that were delayed or prevented by the CCPC in 2021 and 2022 respectively; if he will provide a breakdown of the reasons for the CCPC intervention in each case; if he is concerned with the rate of intervention by the CCPC in any scenarios; and if he will make a statement on the matter. [20089/23]
View answerSection 9 (5) of the Competition and Consumer Protection Act 2014 provides that the CCPC is independent in the performance of its functions. As investigations and enforcement matters generally are part of the day-to-day operational work of the Commission, as Minister of State of this Department I have no direct function in the matter.
The CCPC’s specific reasons for the time taken to deliver merger decisions may vary on a case-by case basis. In general, the CCPC has a statutory obligation to form a view as to whether the result of the merger or acquisition would be to substantially lessen competition in markets for goods or services in the State, i.e., likely to result in substantial reduction in competition leading to higher prices or low quality or reduced innovation. This involves obtaining, verifying and analysing different types of information from various sources.
In 2022, the CCPC took an average of 17.9 days to issue a Phase 1 Decision. The corresponding figure for 2021 was 20.2 days. The timelines in individual cases that did not raise serious concerns varied from 11 to 30 working days depending, for example, on the complexity of the structure of the transaction and the nature of the competition issues involved.
In 2020, the CCPC introduced the Simplified Merger Notification Procedure (SMNP). This procedure enables a streamlined review process for mergers which meet certain criteria indicating they are unlikely to have an effect on competition. The introduction of a Simplified Merger Notification Procedure in Ireland has reduced the time and resources needed to review applicable notifiable mergers or acquisitions. This has had a positive impact on businesses, as review periods for mergers or acquisitions which do not raise significant competition concerns are shorter and the Irish merger control regime is less burdensome for notifying parties. Mergers which are notified under the SMNP are typically cleared within 15 working days of notification. In 2022, 37 of 68 mergers notified (54%) were notified under the SMNP; the corresponding figure for 2021 was 35 of 81 mergers notified (43%).
Determinations may take longer on specific mergers for the following reasons:
• Where information provided by notifying parties is not sufficient, the CCPC may require further information in order to be able to make a Determination on a notified merger, it may issue a Requirement for Information (RFI) to any of the notifying Parties. This RFI resets the Appropriate Date (i.e., Notification Date) and gives the CCPC an additional 30 working days to do a proper review of the merger.
• Where, having considered the information provided and all submissions received, the Commission is unable on the basis of the information before it to form the view that the result of the merger or acquisition will not be to substantially lessen competition in markets for goods or services in the State, the Commission will make a determination to carry out a full investigation, i.e. proceed to Phase 2. In this event, the CCPC must make a decision within 120 working days of the Appropriate Date, plus any pauses in that clock which may result from the issuing of a Phase 2 RFI.
The Table below details the numbers of instances of each such case in 2021 and 2022.
|
- |
2021 |
2022 |
|
SMNP Notifications |
35 |
37 |
|
Phase 1 Clearances (no RFI) |
64 |
59 |
|
Extended Phase 1 Clearances (RFI) |
9 |
5 |
|
Decisions to proceed to Phase 2 Investigation |
3 |
4 |
|
Prohibited Mergers |
0 |
1 |
|
Withdrawn notifications* |
1 |
1 |
*Excludes those mergers which were withdrawn and re-notified
The CCPC approach in reviewing and deciding mergers is in line with international best practice.
