The European Commission has decided to fine with 219,000 Euro the Danish company A.P. Moller for failing to notify and for putting into effect three concentrations.

The Commission had cleared the three concentrations in accordance with the Merger Regulation, but the Commission noted that the transactions had been concluded and even put into effect several months before they were notified to the European Commission. The Commission has confirmed that A.P. Moller clearly breached its obligations to notify the transactions in due time and also its obligation not to implement them without the authorisation from the Commission.

However the fines are rather moderate and can be explained because A.P. Moller has recognised the breach, did not damage competition and informed voluntarily the Commission of its failure to notify the transactions in question, before the Commission discovered it.

It is the second time the Commission fines for breach of notification, the first case was against Samsung/AST in December 98.

The requirement of notifying a concentration prevents companies from implementing a concentration before the Commission takes a final decision, and can therefore avoid irreparable and permanent harm to competitors. It is clear that the Commission wants the companies to respect the rules on notification of mergers and acquisitions, and the Commission will continue to fully apply such measures when appropriate.

This article is based and incorporates information provided by the European Commission (Press Releases) and is intended for general information. Specialist advice should be sought before acting on it.