This article (which is based on a Competition and Markets Authority submission to an OECD Roundtable on the Extraterritorial Reach of Competition Remedies) considers the role of extraterritorial remedies in UK merger control. The UK Courts have confirmed that the CMA is able to extend its jurisdiction in relation to remedies over conduct outside the UK in certain defined circumstances. This supports the CMA's ability to protect UK consumers in a globalized economy. Notwithstanding these powers, the CMA may take the additional risks that can arise around the implementation of extraterritorial remedies into account, where relevant, when designing remedies. In the CMA's experience, the challenges involved in designing and implementing extraterritorial remedies can best be addressed by close co-operation between different jurisdictions’ competition authorities.
Maxwell Harris, Maria Duarte, Colin Raftery, Alistair Thompson and Michael Jewell
Peter Wantoch, Riccardo Ferrari, Joel Bamford and Maria João Duarte
The Competition and Markets Authority (‘CMA’) assesses both the price and the non-price effects of mergers. The relative importance of each depends on the process of rivalry between the merging firms and their competitors. Dynamic non-price effects, for instance on innovation, are potentially important, as the CMA found in the ICE/Trayport merger, which was prohibited. Non-price parameters such as quality, range and service are also important and are considered in particular when mergers occur in markets where price competition is limited, for example public services such as hospitals and regulated markets such as pharmacies.