We have three companies; all of these produce concrete tiles for the Italian market. Milan Roofing Tile Inc. has got a market share on the Italian market of 35 percent, Rome Tile Inc. a share of 25 percent and Turin Tile Inc. of 40 percent. Milan Roofing Tile Inc. made Turin Tile Inc. an offer to purchase Turin Tile’s business as a part of Milan Roofing Tile’s expansion strategy. If Turin Tile Inc. assents there would be an horizontal acquisition (both companies are active on the same market, both produce concrete tiles) with the consequence of a 75 percent share of the concrete tile market in Italy. Even if we include the market of shields and tiles which are produced of other materials they would have a high market share, because concrete tiles are the most used material for the roofs in Italy.
Inhaltsverzeichnis (Table of Contents)
- The Facts of the Case
- European Competition Law
- Article 81 and 82 EC
- Article 81 EC
- Article 82 EC
- European Merger Control Regulation (EMCR)
- The Function of the EMCR
- Substantive review of the acquisition
- The relevant market
- The test of compatibility with the common market
- Article 81 and 82 EC
- Solution
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay analyzes the potential implications of a merger between Milan Roofing Tile Inc. and Turin Tile Inc. on the Italian concrete tile market under European competition law. It focuses on the application of Article 81 and 82 EC, as well as the European Merger Control Regulation (EMCR), to determine the compatibility of the acquisition with the European Common Market.
- Horizontal acquisition
- Dominant position in the market
- The relevant market
- Compatibility with the common market
- Community Dimension
Zusammenfassung der Kapitel (Chapter Summaries)
- The Facts of the Case: Introduces the scenario of a potential merger between Milan Roofing Tile Inc. and Turin Tile Inc. in the Italian concrete tile market, outlining the existing market shares of each company.
- European Competition Law: Explores the relevant articles of European competition law, including Article 81 and 82 EC, which pertain to agreements restricting competition and dominant positions within the European Common Market. It outlines the potential application of these articles to the proposed merger.
- European Merger Control Regulation (EMCR): Explains the function of the EMCR, emphasizing its role in controlling mergers and acquisitions to prevent negative impacts on the European Common Market. It examines the process of determining the relevant market and assessing the compatibility of the acquisition with the common market.
Schlüsselwörter (Keywords)
The central themes of this essay are European competition law, horizontal acquisition, dominant position, relevant market, compatibility with the common market, and Community Dimension. The case study explores the application of these concepts to a real-world scenario, shedding light on the complex interplay between mergers, market dynamics, and legal regulations within the European Union.
- Quote paper
- Sarah Stolle (Author), 2006, Case Study: European Competition Law, Munich, GRIN Verlag, https://www.grin.com/document/60555