On 8 January 2020, the Belgian Competition Authority ("BCA") adopted new rules allowing the BCA prosecutors to scrutinise and approve mergers under the simplified procedure (without the need for a decision by the Competition College) in additional scenarios.
As a result of these changes, the simplified procedure may henceforth be applied in cases where:
- the combined market share of the parties to the proposed merger is below 50% and the increase in the Herfindahl–Hirschman Index (the HHI is a measure of market concentration defined as the sum of the squares of the market shares of all firms operating in a particular market) is less than 150;
- the combined market share of the parties to the proposed merger is below 50% and the increment in the parties' market share resulting from the proposed merger is less than 2%; and
- in view of all circumstances, the merger does not raise any significant competition concern and:
- where the parties are active in the same markets, the parties' combined market share does not exceed 40% in any market; or
- where the parties are active in the same markets, the parties' combined market share does not exceed 40% in any market; or
- where the parties are active in vertically affected markets, the parties' market share in either the relevant downstream or upstream market is less than 40%.
The latter scenario has been added as the BCA has had to review in the past a relatively high number of mergers under the normal procedure (which is long and cumbersome in Belgium) although they clearly did not raise any competition issues.
With thanks to Antoine Accarain for his contribution.
