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21 October 2010
On May 3 2010 the Commission for the Protection of Competition published guidelines outlining those remedies which are acceptable to the commission under Chapter III on Merger Control of the Law on the Protection of Competition. The guidelines mainly elaborate on the mechanism for negotiating solutions for overcoming competition concerns that arise in relation to specific concentrations.
Whenever the commission identifies competition concerns with regard to a concentration of which it has been notified, it first allows the participants to propose changes to the concentration in order to remedy the situation. The guidelines set out general principles applicable to:
If the participants to the concentration choose to propose the divestment of business, certain terms and conditions must be met:
In certain cases the implementation of the originally proposed divestment remedy may be uncertain because the sellers are unable to divest the proposed business to an acceptable buyer by the foreseen deadline. For that reason, the commission accepts proposal of alternative divestment remedies, which are often referred to as 'crown jewels'. Crown jewels may be an upgrade of the original business or another more attractive business, and their implementation must not be uncertain and lengthy. It is important that the alternative proposal be "at least equal, if not better suited" to restoring effective competition than the original remedy.
For further information on this topic please contact Srdjana Petronijević at Moravčević Vojnović Zdravković oad in cooperation with Schönherr by telephone (+381 11 320 26 00), fax (+381 11 320 26 10) or email (firstname.lastname@example.org).
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