Higher notification thresholds for merger control

The bill to simplify economic life was adopted by the French National Assembly and Senate on April 14 and 15. In particular, the bill provides for an increase in the notification thresholds applicable to the French Competition Authority (Autorité de la Concurrence, hereafter referred to as the ” Authority “). From now on, in application of Article 8 and provided that the transaction does not fall within the scope of Regulation (EC) no. 139/2004, a merger is subject to prior control by the Authority when the following conditions are met:

General thresholds :

1. total worldwide sales (excluding tax) of all the undertakings or groups of natural or legal persons involved in the merger exceed 250 million euros (currently 150 million);
2. total sales excluding tax in France by at least two of the companies or groups of individuals or legal entities concerned exceed €80 million (currently €50 million).

Specific retail thresholds :

1. total worldwide sales (excluding tax) of all the undertakings or groups of natural or legal persons involved in the merger exceed 100 million euros (currently 75 million);
2. total sales excluding tax in France by at least two of the companies or individuals operating retail outlets exceed €20 million (currently €15 million).

• Timetable: Subject to validation of the law by the French Constitutional Council and promulgation by the President of the Republic, the new thresholds should come into force on the first day of the fourth month following publication in the Journal Officiel. In the meantime, the current thresholds will continue to apply.
• DOM-COM: The specific thresholds applicable to concentrations in one or more overseas departments, in the Department-Region of Mayotte, in the Wallis and Futuna Islands or in the overseas collectivities of Saint-Pierre-et-Miquelon, Saint-Martin and Saint-Barthélemy remain unchanged.

On the basis of these new thresholds, the Autorité estimates that 20-30% of transactions currently notified would no longer be subject to this obligation.

At the same time, the Autorité is continuing its work to introduce a targeted power of evocation, designed to enable it to examine certain transactions that do not meet the revised notification thresholds but are likely to raise competition issues.

We would be delighted to answer any questions you may have, or to help you assess the impact of these changes on your operations.