Views sought on raising merger thresholds
Minister for Enterprise, Tourism and Employment Peter Burke has launched a public consultation on a proposal to raise the thresholds at which mergers and acquisitions must be notified to the competition watchdog.
Under the Competition Act 2002, the Competition and Consumer Protection Commission (CCPC) must be notified of mergers or acquisitions if specified financial thresholds are reached in the most recent financial year.
The thresholds have not been raised since 2019, but the CCPC has called for them to be raised, citing inflation, the introduction of new powers, and the Government’s commitment to reduce regulatory burden on businesses.
High-value mergers
The 2002 act gives the minister the power to raise the financial thresholds for mandatory notification of mergers by means of a ministerial order once a year.
“Raising the merger threshold allows the CCPC to focus its resources on high-value mergers that are more likely to have a detrimental effect on competition,” said Minister Burke.
Mergers that have the potential to disrupt the market but do not meet the threshold can be reviewed by the CCPC through its ‘call-in’ power.
The consultation is now open and will close on 1 May.