Spillover effects

Spillover effects in the European Union Law

Concept of Spillover effects provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Side effects of an agreement or a merger between two or several firms, which affect competition between them in another relevant market than the one covered by the agreement or the merger in question. Spillover effects are referred to in Article 2(4) of the merger regulation, which concerns the creation of a joint venture that has as its object or effect the coordination of the competitive behaviour of undertakings that remain independent. In that case, the Commission shall appraise this coordination also taking into account whether two or more parent companies retain, to a significant extent, activities in a market which is () downstream or () upstream from that of the joint venture or in a neighbouring market closely related to this market.