Competition Commission

In April 2008, the Competition Commission (CC) and the Office of Fair Trading (OFT) launched a joint review of their respective guidelines for the assessment and analysis of mergers. The two organizations aim to produce a single set of guidelines, combining revised and expanded guidance material currently contained in several publications:

Merger References: Competition Commission Guidelines; CC2 (April 2003),

OFT, Mergers: Substantive Assessment Guidance (OFT 516, May 2003),

OFT, Guidance Note revising Mergers: Substantive Assessment Guidance (OFT 516a, October 2004); and

OFT, Revision to Mergers: Substantive Assessment Guidance - Exception to the duty to refer: markets of insufficient importance (OFT 516b, November 2007).

This joint review has subsumed a stand-alone review by the CC of its merger guidelines (CC2). In February 2008, the CC issued an invitation to any interested parties to comment on CC2, particularly on areas where the parties considered that change or amplification was needed. It received approaching 20 substantive submissions (see links below: Submissions: Responses to initial call for comments on CC2) Many confirmed support for a joint OFT/CC approach and all the points raised in the responses are being taken fully into account in conducting the joint review.

Timescale and process

The target date for the issuance of draft merger guidelines for public consultation is the end of 2008, with the aim of issuing new joint guidelines in mid-2009.

Involvement of interested parties

Some 20 initial submissions on the CC Guidelines have already been received from external economists, lawyers, businesses and others involved in merger inquiries or interested in competition policy. These are making important contributions to the joint review.

The OFT and CC will welcome other submissions by interested parties at any time. In particular, at this stage, it will be helpful to receive comments specifically on points of difference between existing OFT and CC guidance documents, as well as any suggestions or concerns about the aim of combining them in a single document. Please submit comments by e-mail to Tony Gooch; Tony.Gooch@cc.gsi.gov.uk

Throughout the process, the OFT and CC will be jointly issuing working papers on key issues, on which any external party will be welcome to comment. Roundtable and other public discussion sessions will be held on some of the more complex issues. Draft revised guidelines will be put out for formal public consultation once this discussion of issues has been completed.

Project direction

The project is being directed by a joint OFT/CC working party composed of senior CC and OFT staff, under the joint chairmanship of Peter Freeman (CC Chairman) and Simon Pritchard (OFT Senior Director, Mergers).

An internal discussion group of economists helps identify and resolve analytical issues. Its members are Amelia Fletcher (OFT Chief Economist), John Davies (CC Chief Economist), Peter Davis (CC Deputy Chairman), Michael Waterson (CC member), Bruce Lyons (CC member), John Collings (CC member), Chris Walters (OFT Assistant Director, Mergers), Nicola Mazzarotto (CC Head of Policy Analysis), Ioannis Kokkoris (OFT economist).

The final decisions on the draft guidelines text for consultation, and on the final revised text, rest with the OFT Board and the CC Council.

Contacts

Documents and Announcements

Submissions received

Other OFT and CC merger guidance consultation

The CC is also consulting publicly on a separate guidance on merger remedies, which will complement the revised Merger Guidelines.

OFT/CC JOINT REVIEW OF SUBSTANTIVE MERGER GUIDELINES