Section 16 (1) of Law No. 287 of 1990 provides for a prior notification system of all mergers and acquisitions to realize in Italy which fall within certain thresholds.
To help determine whether transactions must be notified, the Italian Competition Authority ("ICA") annually publishes new merger control thresholds.
Therefore, this year, as of 14th March 2016, a concentration shall be notified to the ICA whether it meets the new cumulative conditions below:
- The aggregate turnover in Italy of all undertakings involved exceeds €495 million instead of €492 million, and
- The aggregate domestic turnover of the target undertaking is above €50 million instead of €49.
In our view, as pointed out in our previous articles the thresholds increase follows the rationale underpinning an earlier reform, effective from 1st January 2013, which made the thresholds cumulative rather than alternative.
This in order to reduce the number of merger notifications in Italy. The aim was to allow the ICA to focus only on merger cases which are more likely to reduce competition on the market at issue.