Substantive Criteria used for Merger Assessment – fusion

To decide if a merger should be blocked, conditioned or approved, three basic types of substantive test are employed: i) a dominance test (will the merger create or strengthen a dominant position?); ii) an SLC test (will the merger produce a substantial lessening of competition?); or iii) a public interest test (will the merger have a negative effect on the public interest?), This third test is not a competition test like the other two; it can include a number of non competition criteria such as effects on employment or regional development. Competition authorities tend to focus on one of the two competition tests in reviewing mergers. The discussion highlighted the absence of general consensus concerning the overall superiority of either the dominance or the SLC tests. Whether or not anticompetitive mergers are more likely to be blocked under one or the other competition tests remains highly debatable. The adoption of a common merger test, particularly for mergers affecting international markets, would be a significant contribution to the strengthening of international co-operation among competition authorities