Economic Concentration: Legal provisions on Preliminary Appraisal and Formal Appraisal

Abstract

The control of economic concentration through preliminary and formal appraisal provisions in competition law holds significant importance for the current market environment. The article elucidates the provisions related to appraisal in economic concentration: i) provisions on preliminary appraisal; ii) provisions on formal appraisal; iii) decisions of the competent authority regarding participating enterprises. Research results indicate that the preliminary appraisal and formal appraisal processes aim to control economic concentration in the market to a certain extent. Preliminary appraisal functions as a “quick test”, which is conducted when there is no risk of anti-competitive impact in the relevant market. Meanwhile, formal appraisal is applicable to transactions with potential competition concerns in the relevant market, which competition law must scrutinise and evaluate to minimise risks and disadvantages for the parties involved.