The scope of Finnish merger control is proposed to be extended

In September 2022, the Government submitted its proposal to the Parliament to extend the notification threshold for mergers and acquisitions under the Finnish Competition Act (HE 172/2022 vp). Mergers above certain turnover thresholds must be notified to the Finnish Competition and Consumer Authority (FCCA) which is responsible for, among other things, intervening in transactions which may impede effective competition in Finland.

The obligation to notify a merger to the FCCA currently depends solely on the turnover of the merging parties. Currently, the FCCA must be notified of a concentration if the combined aggregate worldwide turnover of all the undertakings concerned globally exceeds EUR 350 million and the turnover in Finland for at least two of the parties exceeds EUR 20 million each. The study by the FCCA indicates that the current turnover thresholds are too high for the Finnish economy, as many industries fall entirely out of the scope of merger control.

The proposed change will lower the current turnover thresholds so that in the future, a notification should be made if the parties’ combined turnover generated in Finland exceeds 100 million euros and the total turnover generated in Finland of at least two parties exceeds 10 million euros per each party. Consequently, the calculation of turnover would be based on the turnover generated in Finland.

The change would lead to more transactions coming under the extended notification obligation to be examined by the FCAA. The aim of the change is to prevent harmful market concentration and price increases for consumers but at the same time it brings an additional element to the planning of mergers and acquisitions.

For further information on this matter and on competition law issues, please contact:

Ville Salonen, Attorney-at-law / Partner / Chairman of Magnusson International

Tomi Merenheimo, Attorney-at-law / Managing Partner Finland

Lilli Parbo, Specialist Associate, M&A

Additional information regarding the proposal and the FCCA’s study (in Finnish) available at:

https://tem.fi/en/-/amendments-to-competition-act-would-prevent-harmful-market-concentration

https://www.kkv.fi/uploads/sites/2/2021/11/2021-kkv-selvityksia-7-2021-selvitys-yrityskauppavalvonnan-ilmoitusvelvollisuuden-muutostarpeista.pdf