The European Commission has opened a second phase, in-depth investigation into the proposed merger between Dutch dairy companies Campina and Friesland Foods. Campina and Friesland are both active in, among other things, the procurement and processing of raw milk and the development, production and sale of consumer dairy products and industrial dairy and non-dairy products. Both companies are active in The Netherlands and other EU Member States and, according to the Commission, are each other’s closest competitors in fresh dairy products, cheese and other consumer and industrial products. The Commission is concerned that the merger could substantially reduce competition and create a dominant market player in a number of dairy markets and also create supply problems for competitors. The Commission now has 90 working days to take a final decision as to whether the merger will substantially impede competition in the EU Single Market.