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Irish Competition Authority Decisions (Notice Division)


You are here: BAILII >> Databases >> Irish Competition Authority Decisions >> Irish Competition Authority Decisions (Notice Division) >> Notice in respect of certain terms used in section 18(1) of the Competition Act 2002 [2002] IECA 3 (Notice) (18 February 2003)
URL: http://www.bailii.org/ie/cases/IECA/Notice/2002/3.html
Cite as: [2002] IECA 3 (Notice)

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THE COMPETITION AUTHORITY

 

Notice in respect of certain terms used in section 18(1) of the

Competition Act 2002

(As amended 18 February 2003)

Decision No. N/02/003

Date: 18 February 2003

 

Page 2

 

 

Notice in respect of certain terms used in section 18(1) of the

Competition Act 2002

(As amended 18 February 2003)

 

Article 1.

Introduction

This Notice is published by the Competition Authority, 14 Parnell Square, Dublin 1 (“the

Authority”), pursuant to the function conferred on it by section 30(1)(d) of the Competition

Act 2002 (“the Act”). Its purpose is to give guidance to business and to legal practitioners

concerning certain terms used in section 18(1) of the Act. It is not and does not purport to

be an interpretation of the law.

 

Article 2.

Definition of “undertakings involved in the merger or acquisition”

(1) Section 18(1) of the Act makes provision for the notification of proposed mergers

and acquisitions to the Authority. Subject to sub-articles (2) and (3) of this Article, for the

purposes of the calculation of turnover and of assessing whether business is carried on in

any part of the island of Ireland, the Authority understands the phrase “undertakings

involved in the merger or acquisition” as used in that sub-section to mean the entire group

of undertakings to which an undertaking party to a proposed transaction belongs.

(2) Notwithstanding the provisions of sub-article (1) of this Article, in the case of the

acquisition of part (“the target”) of an undertaking (“the vendor”), the turnover only of the

target (whether or not it is constituted as a separate legal entity) shall be taken into account

on the vendor’s side of the transaction.

(3) Notwithstanding the provisions of sub-article (2) of this Article, in the case of an

asset acquisition of the kind specified in section 16(1)(c) of the Act, that part of the turnover

of the vendor that is generated from the assets the subject of the transaction, shall be taken

into account.

 

Page 3

 

 

Article 3.

Definition of “carries on business in any part of the island of Ireland”

Section 18(1)(a)(ii) sets out a criterion whereby a proposed merger or acquisition is notifiable

(subject to the turnover thresholds) if each of 2 or more of the undertakings involved in the

merger or acquisition carries on business in any part of the island of Ireland. The Authority

understands this phrase to include undertakings which have sales into the island of Ireland

without having a physical presence within the island of Ireland.

 

Article 4.

Definition of “turnover in the State”

Section 18(1)(a)(iii) sets out a threshold in respect of turnover in the State. The Authority

understands “turnover in the State” to comprise sales made or services supplied to

customers within the State.

 

For the Competition Authority

_____________________________

Dr John Fingleton

Chairperson,

18 February 2003

 


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URL: http://www.bailii.org/ie/cases/IECA/Notice/2002/3.html