• FIN CMP lowered notification threshold for mergers and acquisitions from 1 January 2023.
• Means harmful market concentration can be prevented more effectively than before.
• Follows FIN CMP November 2022 consulted on draft acquisitions /takeovers guidelines.

Overview

• The changed law aims to prevent harmful concentration of the market, which leads to an increase in the prices of products and services, and a decrease in quality.
• From Jan. 1, 2023, a business transaction must be reported to Finnish Social Insurance Agency if combined Finnish turnover of parties to the business transaction exceeds €100mn and Finnish turnover of at least 2 parties to business transaction is +€10mn.
• The new turnover limits apply to acquisitions where the acquisition agreement has been signed or control has been acquired on or after January 1, 2023.
• Previously, the transaction came under investigation when the combined worldwide turnover of the companies exceeded €350mn and the accumulated turnover from Finland of at least two parties to the merger exceeded €20mn for each party.
• Previous notification threshold was higher than in other EU countries and Nordic countries of the same size, and according to the report made by FIN CMP in 2021, entire industries were excluded from takeover control due to too high turnover limits.

Effectiveness

• The amendment to the Competition Act enters into force on 1 January 2023.