FDI and EU Competition Law – Achieving Legal Certainty When Creating Korean-European Joint Ventures
Posted by D. Daniel Sokol
Simon Baier (Hankuk University of Foreign Studies) analyzes FDI and EU Competition Law – Achieving Legal Certainty When Creating Korean-European Joint Ventures
ABSTRACT: Korea’s foreign direct investment in the European Union is expected to increase as a consequence of the Koreaâ€EU FTA. Korean companies planning to invest in the European market will often choose the form of a joint venture as the preferred business vehicle.
This article analyzes the formation of joint ventures under EU competition law and shows that two areas can be concerned with it – European antitrust law and merger control law. The article argues that by creating the joint venture as ‘concentrative full-function undertaking’ the founders will be able to achieve a high and satisfactory level of certainty about the legality of their intended business, because the formation process will be subject to merger control proceedings with the possibility of a pre-clearance by the European Commission. Over such a joint venture parent companies must maintain common control, and they have to ensure that it operates independently from them in the market on a lasting basis. In addition, the founders need to fully withdraw from the joint venture’s market and any adjacent markets.
The article also points out that joint ventures which only take over one specific function within the parents’ business activities or which induce ‘spill-over effects’ can hardly be subject to merger control but will be dealt with Art 101 TFEU exclusively and will thus forego the chance of receiving a ‘clean bill’ by the European Commission.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI