‘Gun Jumping’ in the merger implementation in the EU in light of the Altice Case
‘Gun Jumping’ in the merger implementation in the EU in light of the Altice Case

Author(s): Barbara Dufková
Subject(s): Law, Constitution, Jurisprudence, EU-Legislation, Commercial Law, Court case
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: competition law; gun jumping; M&A; EU Merger Regulation; information exchange;
Summary/Abstract: The paper analyses the scope of the gun jumping prohibition in light of the judgment of the General Court in the Altice case (T-425/18). After introducing the facts of the case, it dives into the legal issues raised. It concentrates on the main areas of concern – the scope of Article 4(1) and 7(1) of the EU Merger Regulation, the pre-closing covenants in the transaction documentation and the exchange of information. The paper identifies four important implications of the Altice case. First, the case confirms that concurrent violation of notification and standstill obligation is possible. Second, it provides clearer guidance as to which pre-closing covenants may be regarded as granting the acquirer a possibility of exercising control over the target. Third, it confirms that a concentration may be implemented by pre-closing covenants regardless of their actual implementation. Finally, it makes clear that excessive information exchange may support the finding of decisive influence.

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