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EU re-examines M&A plan
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June 12, 2000: 7:27 a.m. ET
Commission may continue 'guidance' over major takeovers
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LONDON (CNNfn) - European regulators may continue to issue limited guidance about antitrust considerations to companies involved in cross-border mergers before a formal examination of deals, competition commissioner Mario Monti said on Monday.
Monti was responding to criticism of the planned reform of European Union competition policy. The changes which would end the current system by which companies can obtain a prior ruling from the Commission on whether a proposed deal would conform with EU antitrust policies, or whether changes would be needed to keep it inside the rules.
"We are considering the possibility that the Commission may issue reasoned opinions that may [clarify certain deals]," Monti told CNNfn.com. "But [we] will not reintroduce notification by the backdoor."
Monti said the notification system was no longer suitable for Europe's changing business landscape, though supporters believe it provides legal certainty at relatively low cost, before companies make a full commitment to buy or merge.
The changes are part of a package designed to transfer oversight of some competition matters from the Brussels-based European Commission to national antitrust offices and courts.
Brussels aims to devolve power
 The reform would reflect both the heavy burden on the Commission and the EU's policy of "subsidiarity", which aims to devolve as much power as possible to national authorities.
Monti said he aimed to focus resources in Brussels on examining high-profile cross-border mergers. He said its case load increased to about 300 deals last year from 140 in 1998.
The current batch includes the combination of MCI Worldcom (WCOM: Research, Estimates) with Sprint (FON: Research, Estimates), while the potential merger of British Airways (BAY) and Dutch airline KLM is also likely to hit Monti's desk.
Oversight of areas such as price fixing would be returned to national authorities under the plan, which is due to go before the Commission in September.
Monti told CNNfn.com that he planned to take other concerns over the planned changes into account, including worries that national regulators were not equally equipped to scrutinize complex cases.
"It's important to have constant application and legal certainty," said Monti. 
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European Commission
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