ABSTRACT
A third type, being a full-function joint venture, is defi ned in Article 3(4) as a joint venture performing on a lasting basis all the functions of an autonomous economic entity. A joint venture which satisfi es this defi nition is within the scope of the MR, otherwise it is dealt with under Article 101 TFEU. 4. Only concentrations which have an EU dimension are within the scope of the MR. Article 1 of the MR sets out two sets of thresholds, expressed in terms of turnover of the undertakings concerned worldwide, and within the EU, to establish whether the relevant operation has an EU dimension. The thresholds also determine the jurisdiction of the Commission or of national competition authorities to deal with the intended concentration. 5. Article 2(2) of the MR contains the substantive test for assessment of compatibility of the intended concentration with the requirements of the internal market. According to this test a concentration may be prohibited fi rst, if it strengthens or creates a dominant position, and second, when it takes place in the context of a non-collusive oligopoly and does not lead to a single or joint dominance but produces effects which signifi cantly impede effective competition in the internal market or a substantial part of it. 6. All concentrations which are within the scope of the MR must be notifi ed to the Commission. If a concentration is implemented either before notifi cation or before it is cleared by the Commission, the parties concerned may be fi ned by the Commission. Further, Article 7(1) of the MR provides that no concentration may come into legal effect until the Commission has delivered a compatibility decision or failed to make such a decision. The Commission (in what is known as the Phase I Investigation) is required to take an initial decision within 25 working days of receipt of complete notifi cation (however, this period may be extended to 35 working days in the circumstances described in Article 9 of the MR). At the end of this procedure the Commission may decide that the concentration under consideration:
■ is compatible with the internal market subject to some conditions which it attaches to the decision, or without any conditions;
■ falls outside the scope of the MR, in which case national laws may apply to the concentration; or
■ requires more investigation as it raises serious doubts about its compatibility with the internal market. In that case the Phase II Investigation commences.
