Professional Documents
Culture Documents
Mergers
Class 10
By: Mohamed ElFar
DLA Piper - Egypt
Related Persons
Single Economic Unit
Types of control:
1. De jure (Ownership of more than 50% shares, Veto
rights)
2. De facto (BSkyB Case)
. Responsibility of the Parent Company.
Leniency
In case of committing any of the crimes mentioned in Articles
(6) and (7) of this Law, the court may exempt, up to the half
of the sanction decided thereby, violators who take the
initiative to inform the Authority of the offence and submit
the supporting evidence, and for those whom the Court
considers to have contributed to disclosing and establishing
the elements of the offense at any stage of inquiry, search,
inferences gathering, interrogation and trial processes.
Old Leniency
Old Leniency Program
1. No automatic immunity.
2. 50% discount in the final penalty.
3. Does not differentiate between whistle blower and
those who come after.
Mergers
Horizontal Mergers
Significant Impediment to Effective Competition, in particular,
the creation or strengthening of a dominant position.
(SIEC)
Herfindahl Hirschman Index (HHI)
Theories of Harm:
Non-coordinated Effects
Coordinated Effects
Coordinated Effects
Requires the following;
1. Monitoring Mechanism
2. Deterrent Mechanism
3. High Entry Barriers
Vertical Mergers
Non-coordinated Effects
1. Input Foreclosure
2. Customer Foreclosure
. To assess whether there will be foreclosure;
1. Ability to foreclose
2. Incentive to foreclose
3. Effect on competition
. Coordinated Effects
Conglomerate Mergers
Non-coordinated and coordinated effects
Questions?
Thank you