Moldova: New regulation on economic concentrations

Pre-notification consultations

Undertakings are encouraged to conduct pre-notification consultations with the MCC before filing their notifications. Besides competition law, the norm is now included in the New EC Regulation. The consultations aim to address the main legal and practical aspects of the intended economic concentration. The inclusion of this recommendation in the New EC Regulation is a positive development, as transacting parties have traditionally spent considerable time debating the necessity and potential risks of disclosing information to the MCC prior to signing.

New definitions implemented

The New EC Regulation establishes new definitions, providing greater clarity on the types of economic concentrations and control mechanics. Some are "negative sole control", "conglomerate concentrations" and "vehicle". These definitions help legal practitioners better understand and navigate the regulatory landscape, ensuring accurate and compliant notifications.

Simplified notification procedure

The New EC Regulation introduces a streamlined notification procedure for certain economic concentrations that do not raise competition concerns, thus reducing the administrative burden on enterprises, allowing for quicker and more efficient handling of notifications. In particular, the act describes in more detail

• the situations when the simplified notification procedure is applicable, while taking into consideration such criteria as turnover, relevant product markets (conglomerate concentrations), market share or control transition (from joint control to sole control); as well as
• the situations when the simplified notification procedure is excluded (significant increase of market power, a share of at least 30 % on closely related neighbouring markets, markets with high entry barriers, high concentration or known competition issues).

Also, the inclusion of flexibility clauses allows the MCC to switch from a complete procedure to a simplified one under certain conditions. This adaptability can benefit enterprises by reducing the complexity and duration of the notification process.

More detailed investigation procedures

Compared to its predecessor, the New EC Regulation provides more detailed procedures for the investigation of economic concentrations. In particular, it transposes the provisions of the Moldovan Competition Law No. 183, including the procedures for conducting inspections, interviews and hearings, issuing investigation reports and exercising the right of defence and the right to be heard. In addition, the new act outlines the steps to be taken and the information to be provided to prove to the Moldovan competition authority that the status quo ante has been restored in the event the economic concentration is abandoned.

New notification forms

The MCC has updated the forms for notifying economic concentrations to ensure the provisions of Commission Implementing Regulation (EU) 2023/914 of 20 April 2023 are transposed. Such alignment may be regarded as the authority seeking to facilitate cross-border transactions.

In conclusion, the novelties introduced by the New EC Regulation appear to result from more than ten years of analysis and investigation of notifications on economic concentrations by the MCC, reflecting a commitment to transparency, efficiency and alignment with the EU's acquis.

author: Andrian Guzun