A Rule of Reason Approach for Passive Minority Interests within the European Union

Abstract

Abstract In this interdisciplinary paper we analyze the anticompetitive effects and the practicability and applicability of passive (non-controlling) minority interests within the existing Merger Regulation system [Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation), OJ L 24/1]. The empirical evidences from existing economic literature and case law show that the existence of an enforcement gap in European Union competition law regarding the anticompetitive effects of non-controlling minority interests has not been confirmed so far. Therefore, there is no space, at least to date, for a per se ruling in the European Union Law for the assessment of passive minority interests, but for a Rule of Reason approach, based on a case by case analysis. The Commission should continue to investigate non-controlling transactions and, in the future, an ex post assessment/quantification of their anticompetitive effects, based on existing (or settled) case law and economic theory, should be at the core of its agenda.