New merger thresholds

On 19 July 2005, new merger notification thresholds entered into force by the adoption of a Royal Decree of 3 July 2005 amending the current Competition Act.

The system of mandatory pre-merger notification is maintained, but the notification thresholds have been increased significantly. Mergers, acquisitions, takeovers and joint ventures are subject to control in Belgium only if (a) the combined Belgian turnover of all the companies concerned (including their affiliates) exceeds EUR 100 million and (b) each of at least 2 of the companies concerned, including their affiliates, has a Belgian turnover exceeding EUR 40 million. Under the old rules on notification, these thresholds were EUR 40 million and EUR 15 million respectively. The merger thresholds may be increased by Royal Decree and they will be subject to an evaluation by the Competition Council every three years.

A new competition law

Furthermore, on 29 June 2006, the new legislation replacing the existing Competition Act was published in the Belgian Official Journal.

This “New Law” represents the second of a “2-stage” reform of Belgian competition law which started with the Royal Decree of 25 April 2004, bringing the provisions of the Competition Law into line with the provisions of Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty.