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The control of enterprises’ concentrations (mergers, takeovers, purchase of a part of the target’s assets) aims to prevent their excessive consolidation and gaining a dominant market position, which causes significant lessening of competition.
The initial control of the President of the OCCP covers only the mergers which have effect in the territory of Poland. An intention to concentrate must be reported if it involves enterprises whose aggregate world-wide turnover exceeds the equivalent of EUR 1 billion or whose aggregate turnover in Poland exceeds the equivalent of EUR 50 million in the financial year preceding the notification.
The Act of 16 February 2007 on competition and consumer protection provides for situations in which – due to potentially insignificant impact of the planned concentration on the market - the obligation to notify is excluded. This relates to cases where the turnover of the target enterprise did not exceed the equivalent of EUR 10 million in Poland in any of the two financial years preceding the notification, or if the merger involves entities belonging to one capital group.
The President of the OCCP clears a concentration if it is not expected to result in a substantial lessening of competition (in particular by creation or strengthening of a dominant position); otherwise, the Presient of the OCCP forbids the merger. It is also possible that a concentration is cleared subject to the fulfilment of specific conditions (for example, sale of a part of the assets). The Act also allows to clear a merger that may be expected to result in lessening of competition, provided, however, that it will foster economic growth or technical advancement or may has a positive impact on the national economy.
If a concentration takes place without prior consent of the President of the OCCP, he may undertake to restore the state of effective competition - for example, he may order that the enterprise be divided or that part of its shares is sold. He may also impose a fine of up to 10% the involved enterprises last year's revenues.