Ec Competition Law and the Regulation of Passive Investments Among Competitors
Posted: 12 Jan 2005 Last revised: 9 Jun 2008
Passive holdings and cross-investments among competing companies are common phenomena in the modern marketplace. Yet under certain market conditions such investments may cause anticompetitive effects. This paper explores the economic effects of passive investments and their regulation under European competition law. The paper identifies a range of transactions that potentially affect competition, however remain unchallenged under current EU competition law. Subsequently, the paper explores the possibility of applying the European Merger Regulation to these transactions.
Keywords: Passive investment, EU competition law, Tacit collusion, unilateral effects, merger regulation
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