Innovation in High-Tech Mergers: Should Competition Law Bother?

Abstract

The analysis of the adverse effects of a merger on competition has recently changed. While for years, competition authorities have focused primarily on the effects of a merger on prices, the impact on output, or the creation or strengthening of a dominant position in a given market, they are now examining the effects of a merger on innovation. According to the author’s analysis, which begins by explaining the peculiarities of high-tech industries, the notion of “innovation”, and the rationale for merger control, this system can only establish its effectiveness by applying the same standards of proof of the pro- and anti-competitive effects of a merger.

Appendix—Summary Table of the Analysed European Commission Merger Cases in High-Technology Industries

Decision date	Case	Industry	Theory of harm	Efficiency	Cleared	Challenged?
01.12.1999	M.1601 Allied Signal/Honeywell Merger between AlliedSignal Inc. and Honeywell Inc., both U.S. firms AlliedSignal is a manufacturing company operating in the aerospace, automotive and engineered materials (i.e. polymers, speciality chemicals and electronic materials) sectors Honeywell develops and supplies advanced technology controls and products, systems and services for homes and buildings, industrial applications and the aerospace industry	C.30.3—Manufacture of air and spacecraft and related machinery	The Commission’s in-depth investigation raised serious doubts as to the creation or strengthening of a dominant position (CSDP) in certain avionics product markets through technical bundling and withholding of information due to the overlapping activities of undertakings. See in particular paras 101–103 and para. 114	“As long as such technical integration does not lead to foreclosure effects, improved technical interoperability may generally be considered to be in the interest of customers…” (para. 112)	Yes, both in the EU and in the U.S., subject to substantial conditions (paras 125 et seq.)	No
03.07.2001	M.2220 General Electric/Honeywell Proposed acquisition by General Electric Co. of Honeywell Inc Markets for aero-engines, avionics and other aircraft components and systems	C.28.11—Manufacture of engines and turbines, except aircraft vehicle and cycle engines; C.26.51—Manufacture of instruments and appliances for measuring, testing and navigation; C.20.16—Manufacture of plastics in primary forms	CSDP The Commission’s in-depth investigation showed that GE alone already held a DP in the markets for jet engines for large commercial aircraft and large regional aircraft, a position that would have been further strengthened after the merger. The investigation also showed that Honeywell was the leading supplier of avionics and non-avionics products, as well as corporate jet engines and engine starters	The Commission asserted that GE had not presented any efficiency resulting from the merger	No, in the EU, since remedies proposed by GE were insufficient to resolve the competition concerns Yes, in the U.S	Yes, T-210/01, General Electric Company vs Commission, Judgment of the Court of First Instance, 14.12.2005 The Court of First Instance upheld the prohibition of the acquisition of Honeywell by GE
28.04.2005	M.3680 Alcatel/Finmeccanica/Alcatel Alenia Space & Technology Creation of two JVs resulting from Alcatel merging its space activities with those of Alenia Spazio and Telespazio, and engineering company Finmeccanica Alcatel is a French industrial company that produces telecommunication equipment, satellites, and space subsystems and provides space-related services Finmeccanica is an Italian state controlled diversified engineering company that produces satellites and subsystems and provides satellite-based services such as space mission management	C.30.3—Manufacture of air and spacecraft and related machinery	The Commission’s investigation did not find that the JV of Alcatel Space/Alenia Spazio JV could foreclose competing satellite prime contractors and integrators or have a negative effect on satellite users. Indeed, both companies face credible competitors for satellite systems and related equipment However, the market investigation showed that the combination of the merging parties’ activities would lead to an almost uncontested market position for tracking and telemetry control systems and radar altimeters, which are key parts used on satellites	No	Yes, with conditions and obligations	No
19.05.2006	M.3998 Axalto/Gemplus Axalto, a Dutch company, acquired Gemplus, based in Luxembourg Both companies produce and sell smart cards used for cell phones, payments and identification, as well as related products and services The parties also provide products and services related to the administration of already issued SIM cards. SIM card administration is performed through Over-the-Air (OTA) platforms, which allow mobile operators to control a SIM card without a physical connection	C.26.2—Manufacture of computers and peripheral equipment	SIEC Based on its market investigation, the Commission concluded that, despite the strong positions of the two companies, the transaction would not lead directly to higher prices or a reduced pace of innovation However, the Commission also found that the merged entity would have had both the ability and the incentive to undermine the position of its competitors, given that the transaction would combine two important IP portfolios. In addition, the Commission had identified serious risks of compatibility of OTA platforms with competing card manufacturers	The merging parties have claimed expected efficiencies that have been confirmed by their customers (para. 48)	Yes, the parties have undertaken (i) to license the patent portfolio of the combined entity and (ii) to provide third parties with the necessary interoperability information to ensure the compatibility of their cell phone SIM cards with the technology of the combined entity	No
27.04.2006	M.4100 Seagate/Maxtor Merger between Seagate and Maxtor Seagate, based in the United States, designs, manufactures and markets hard drives worldwide for a variety of uses. It also produces thin-film recording media and read/write heads that are used in its hard drives Maxtor, also based in the United States, is a global supplier of hard disk drives for a variety of uses, including desktop computers, servers and consumer electronics applications, and is also active in the production of recording media for its own hard disk drives	C.26.2—Manufacture of computers and peripheral equipment	SIEC The Commission took into account, inter alia, the following factors: (i) the practice of regular supply of HDDs to customers, who can easily switch suppliers; (ii) competition with eight other HDD manufacturers, who face relatively low barriers to entry in neighbouring HDD markets; (iii) the possibility of expanding existing capacities in the various HDD markets without significant costs and delays; (iv) the high rate of innovation in the market, short product life cycles and a continuous decline in prices The merger will not lead to a significant reduction of the component markets if the merging parties increase their in-house production of components	Efficiency gains were not claimed	Yes	No
28.04.2007	M.4465 Thrane & Thrane/Nera Acquisition of Nera Satcom AS by Thrane & Thrane A/S Thrane & Thrane, the Norway-based acquirer, is active in the development, production and sale of equipment for terrestrial, maritime and aeronautical satellite communications, based on Inmarsat satellite systems. It also produces and sells radio communication equipment. It is also one of the designated distributors of airtime for Inmarsat’s next generation satellites in the terrestrial communications sector Nera, the Dutch target company, is active in the development, production and sale of terminals and earth stations for mobile terrestrial and maritime satellite communications	C.26.51—Manufacture of instruments and appliances for measuring, testing and navigation	SIEC The Commission concluded that the merged entity would not be able to increase its prices profitably, as the terminals produced by the parties are subject to competition from terminals produced by other manufacturers The market investigation showed that there are a number of competitors capable of developing and supplying maritime terminals The market investigation also revealed that the competitive landscape is likely to change in the foreseeable future due to technological developments in the market for terminals addressing more complex communication needs, namely the introduction of terminals capable of providing broadband services	Efficiency gains were not claimed	Yes in the EU, Norway and Spain in October 2006 Initially following a request for information from the UK Office of Fair Trading, the merger was notified in the UK in October 2006. The OFT subsequently referred the case to the Commission, which acquired jurisdiction to assess the merger in December 2006	No
16.02.2007	M.4502 Lite-On/PBDS Proposed entry of Lite-On into Philips & BenQ Digital Storage Corporation (PBDS). Under the proposed transaction, Lite-On would replace BenQ as a shareholder, while Philips NV would retain its shares Lite-On, a Taiwanese technology company, is active in computers, communication products, consumer electronics and optical data storage disk drives for personal computers PBDS of Taiwan is active in the development, design, marketing and sales of optical data storage disk drives for personal computers. With the proposed acquisition, Lite-On would replace BenQ as the controlling shareholder of PBDS, while Philips would remain the other controlling shareholder	C.26.2—Manufacture of computers and peripheral equipment	SIEC The Commission’s examination showed that the horizontal overlap between the activities of Lite-On and PBDS in the supply of ODD PCs would not give rise to competition concerns and that the combined entity would continue to face several strong, effective competitors The Commission also analysed the effects on the branded aftermarket (i.e. retail sales as opposed to sales to original equipment manufacturers) in which Philips is active. The Commission concluded that there would be no risk of substantial strengthening of the new entities’ position in any of these markets and that customers would continue to have alternative and competing sources of supply	Efficiency gains were not claimed	Yes	No
27.02.2008	M.4979 Acer/Packard Bell Acer to acquire Packard Bell Acer, based in Taiwan, is a global supplier of PCs and related products, including notebook and desktop PCs, servers and storage, LCD monitors and high-definition TVs Packard Bell, headquartered in the Netherlands, is a European supplier of desktop computers, notebooks and digital entertainment solutions	J.62.0—Computer programming, consultancy and related activities; C.33.20—Installation of industrial machinery and equipment; C.26.4—Manufacture of consumer electronics; C.26.51—Manufacture of instruments and appliances for measuring, testing and navigation	SIEC The Commission’s examination showed that the proposed merger would lead to horizontal overlaps for desktops and notebooks, both for professionals and consumers, at the EEA and national level. However, the market would remain competitive post-merger in all segments of the PC sector with well-established alternative suppliers such as Hewlett-Packard, Dell, Fujitsu-Siemens, Toshiba, Sony and Lenovo	Efficiency gains were not claimed	Yes	No
21.01.2009	M.5332 Ericsson/STM/JV Creation of a JV between Ericsson Mobile Platforms (EMP), and ST-NXP, the wireless semiconductor business of STMicroelectronics Ericsson (Sweden) is active in the field of telecommunication products, ranging from networks and multimedia solutions to business services and other communication products such as cell phones. It is the ultimate parent company of EMP STMicroelectronics (Netherlands) is active in the supply of semiconductors, ranging from individual components to complex integrated systems and complete electronic platform solutions. It is the ultimate parent company of ST-NXP, a company active in semiconductors for mobile telecommunications	C.26.3—Manufacture of communication equipment; C.26.4—Manufacture of consumer electronics	SIEC The Commission’s market investigation found that the creation of the joint venture would not raise horizontal competition concerns in the markets for wireless platforms and wireless semiconductors The parties were also active in vertically related markets. The joint venture would result in the creation of an integrated platform provider by combining ST-NXP’s semiconductor activities with EMP’s platform design activities. However, the Commission’s investigation did not reveal any competition concerns in this respect either	Efficiency gains were not claimed	Yes	No
28.09.2009	M.5421 Panasonic/Sanyo Acquisition of Sanyo by Panasonic, subject to conditions Panasonic Corporation, based in Japan, is primarily engaged worldwide in the development, manufacture and sale of a wide range of audio-visual and communication products, home appliances, electronic components and devices, including batteries and industrial products Sanyo Electric Co. Ltd., based in Japan, is primarily engaged in the development, manufacture and sale of consumer products, commercial equipment, electronic components including batteries and industrial logistics and maintenance equipment worldwide	C.27.2—Manufacture of batteries and accumulators; C.26.4—Manufacture of consumer electronics; C.26.11—Manufacture of electronic components	SIEC The Commission’s investigation identified competition concerns in a number of battery markets where the merged entity would have a significant market share The Commission also investigated a number of consumer electronics markets, such as camcorders and flat-screen TVs, where both Panasonic and Sanyo are active. The Commission’s investigation revealed that in many cases the eventual increase in market share was limited and that the merging parties were generally not considered each other’s closest competitor. In addition, the merged entity would continue to face competitive pressure from a number of players in each of the relevant markets	Efficiency gains were not claimed	Yes, subject to conditions	No
10.03.2009	M.5426 Dassault Aviation/Thales Acquisition of Thales by Dassault Aviation and TSA Dassault Aviation, a public limited company under French law, is active in the space sector and in the civil aviation (business aircraft) and military (combat aircraft, flight simulators) sectors TSA, a holding company wholly owned by the French State, has no operational activities. It holds a 26.56% stake in Thales, also a French company, which is active in satellites and associated subsystems, aeronautical equipment for civil and military aircraft, air defence systems, military communication systems and maritime security equipment and systems	C.30.3—Manufacture of air and spacecraft and related machinery	SIEC The Commission’s investigation ruled out any risk of distortion of competition that might result from a combination or vertical integration of the parties’ activities, as there would remain credible alternative suppliers on the markets after the transaction The Commission also considered that the French Ministry of Defence would have a say in the selection process of component manufacturers for these products, so the transaction would not restrict the access of Thales’s competitors to products manufactured by Dassault Aviation. In addition, the selection processes for military equipment manufacturers are part of long-term programmes that will not be affected by the proposed transaction	Efficiency gains were not claimed	Yes	No
11.05.2009	M.5483 Toshiba/Fujitsu HDD Business Toshiba acquires Fujitsu’s HDD business Toshiba Corporation, of Japan, manufactures and markets a wide range of high-tech electronic and electrical products, including hard disk drives, including various types of mobile hard disk drives and various electronic products that use these hard disk drives The HDD Business of Fujitsu Limited, also of Japan, includes Fujitsu’s global assets and subsidiaries in the production, design, sales, research and development of hard disk drives, including 2.5-inch mobile hard disk drives and 2.5- and 3.5-inch enterprise hard disk drives, excluding Fujitsu’s development and production of hard disk drive media, heads and components	C.26.2—Manufacture of computers and peripheral equipment	SIEC The Commission considered that although the transaction would make the merged entity the largest producer of mobile HDDs in terms of market share, the HDD market is competitive and the transaction would therefore not give rise to competition concerns in these markets Post-transaction, Toshiba will continue to face significant competitors in a market where technological advances are relatively rapid, resulting in short product life cycles	Efficiency gains were not claimed	Yes	No
20.01.2010	M.5611 Agilent/Varian Acquisition of Varian by Agilent Agilent Technologies Inc. and Varian Inc are both U.S.-based and active in the design, development, manufacture and sale of bioanalytical measurement products, including analytical and life science instruments, as well as related services, consumables and software	C.26.51—Manufacture of instruments and appliances for measuring, testing and navigation	SIEC The Commission identified competition concerns in each of the markets for instruments used to detect and quantify molecular and atomic components in a given sample. The proposed transaction would bring together close competitors in some of the identified markets, resulting in the combined entity holding significant market shares The proposed transaction would also result in the elimination of a significant competitive force in one identified market (triple quad GC–MS instruments). Varian already had significant market shares in this market and, although a recent entrant, Agilent has also rapidly gained significant influence and competes closely with Varian in this market	Efficiency gains were not claimed	Yes, subject to conditions	No
26.01.2011	M.5984 Intel/McAfee Acquisition of McAfee by Intel Intel is the leading U.S. manufacturer of CPUs, the core chip in a computer, and chipsets, which are used in industries such as computing and communications, and are among the most important components of computers. Intel also develops digital computing technology platforms, which combine various types of hardware and software McAfee is a U.S.-based security technology company that designs and develops security products and services to protect Internet-connected devices from malicious content	J.62—Computer programming, consultancy and related activities; C.26.1—Manufacture of electronic components and boards	The Commission was concerned that competing computer security products could be foreclosed from the market, given Intel’s strong presence in the worldwide markets for computer chips and chipsets. In particular, the Commission was concerned that the merged entity would be very likely to embed its own security solutions in its chips and chipsets, thereby creating interoperability problems with regard to competitors’ CPUs, which would need access to them in order to develop new solutions	The Commission analysed the efficiencies of the merger in terms of complementing the commitments. Both were likely to eliminate the competition concerns identified, as they were designed to maintain interoperability between the merged entity’s products and those of their competitors, thereby ensuring equal competition between the parties and their competitors	Yes, subject to conditions	No
27.06.2011	M.6126 Thermo Fisher/Dionex Corporation Acquisition of Dionex by Thermo Fisher U.S.-based Thermo Fisher Scientific Inc. produces analytical instruments, scientific equipment, consumables, software and services for research, analysis, discovery and diagnosis Dionex Corporation is a U.S.-based manufacturer of liquid chromatography instruments (particularly ion chromatography), sample preparation systems, consumables and software for chemical analysis	C.26.51—Manufacture of instruments and appliances for measuring, testing and navigation	SIEC The Commission’s review showed that the combination of Thermo Fisher’s and Dionex’s activities will not lead to competition concerns in any of the relevant markets The Commission’s investigation also showed that the combined entity will not have the ability or incentive to restrict the interoperability of its Nano-LC instruments or mass spectrometry instruments with those of its competitors The Commission therefore concluded that the transaction would not raise competition concerns	Efficiency gains were not claimed	Yes	No
23.11.2011	M.6203 Western Digital Ireland/Viviti Technologies Western Digital acquires Hitachi’s hard drive business Western Digital (WD), a U.S.-based company, designs, develops, produces and sells hard drives, SSDs, external hard disk drives (XHDDs) and media players. WD also produces key hard drive components, such as read/write heads and media Hitachi Global Storage Technologies (HGST), renamed Viviti Technologies, is a wholly owned subsidiary of Hitachi, Ltd. of Singapore. It develops and manufactures hard disk drives and SSDs, under the XHDD brand, and also produces key hard disk drive components such as heads and media	C.26.2—Manufacture of computers and peripheral equipment	SIEC The Commission’s extensive review found that there are distinct global markets for hard disk drives based on their form factor and their end use. The Commission also identified a separate market for XHDDs, which is downstream of HDDs In the markets for 3.5 ″ desktop HDDs and consumer electronics HDDs, the merged entity will only face competition from the recently merged Seagate/Samsung. This is a problem because, for security of supply reasons, most customers in these markets buy their HDDs from several suppliers	The parties alleged a series of expected efficiencies. The Commission rejected all of them in full, as the parties failed to prove that the claimed efficiencies were verifiable, specific to the merger or that the merger will benefit customers	Yes, subject to conditions	No
10.05.2012	M.6214 Seagate Technology/The HDD Business of Samsung Electronics Seagate Technology acquires Samsung’s hard drive business Seagate Technology (USA) is a worldwide manufacturer of branded hard drives, SSDs and external drives. Its businesses are vertically integrated upstream in the manufacture of key components, such as heads and media Samsung Electronics’s HDD business (Korea) produces branded hard drives and external drives. Samsung’s HDD business is not vertically integrated upstream in the manufacture of components. Samsung’s SSD business will not be transferred to Seagate	C.26.2—Manufacture of computers and peripheral equipment	SIEC The main impact of the transaction is in the markets for 3.5 ″ desktop HDDs and 2.5 ″ mobile HDDs, where the investigation revealed that Samsung is not a particularly strong competitor. There would remain three strong suppliers in the 3.5 ″ desktop market (the merged entity, WD and Hitachi Global Storage Technologies), and four strong suppliers in the 2.5 ″ mobile drive markets (the three plus Toshiba). With at least 3 suppliers, customers will retain sufficient options to switch suppliers. The Commission also found that the elimination of Samsung is not likely to lead to a risk of coordination between the remaining HDD suppliers	Efficiency gains were not claimed	Yes	No
09.03.2012	M.6381 Google/Motorola Mobility Google to acquire Motorola Mobility Google is a provider of Internet search and online advertising services. It also provides a number of additional online services and software products. Google’s revenues are primarily derived from online advertising and, to some extent, from mobile online advertising. Google also develops and makes available an open source mobile operating system called Android Motorola Mobility is a provider of mobile devices (smartphones and tablets), set-top boxes, end-to-end video solutions and cable broadband access solutions	C.26.30—Manufacture of communication equipment; J.61—Telecommunications; J.61.20—Wireless telecommunications activities	SIEC The Commission’s investigation showed that Android contributes to the diffusion of Google’s other services and, given Google’s basic business model of distributing its online and mobile services and software to the widest possible audience, it is therefore unlikely that Google would restrict the use of Android only to Motorola The Commission also concluded that the proposed transaction would not significantly change the current market situation with regard to access to SEPs held by Motorola Finally, the Commission found that Google would not be able to use Motorola’s SEP to obtain preferential treatment for its services, including search and advertising	Efficiency gains were not claimed	Yes	No
26.07.2012	M.6410 UTC/Goodrich United Technologies to acquire Goodrich aerospace equipment company United Technologies Corporation (UTC) is a U.S.-based company active in the production of a wide range of high-technology products and support services for the building systems and aerospace industries worldwide Goodrich Corporation is a U.S.-based company engaged in the production and sale of systems and services to the aerospace, defence and security industries worldwide	C.30.3—Manufacture of air and spacecraft and related machinery	SIEC The Commission examined the competitive effects of the proposed acquisition in various affected markets and concluded that the transaction would not raise competition concerns in any of them	Efficiency gains were not claimed	Yes, subject to conditions	No
26.11.2013	M.6944 Thermo Fisher Scientific/Life Technologies Acquisition of Life Technologies by Thermo Fisher Thermo Fisher Scientific Inc. is a U.S. company active in the production and supply of analytical instruments and laboratory consumables (e.g. reagents) in virtually all areas of experimental science, including life sciences, chemistry and physics. Thermo Fisher also operates a strong multi-brand scientific distribution business, Fisher Scientific Life Technologies Corp. is a U.S.-based manufacturer of analytical instruments and laboratory consumables for the life sciences, where it is the global market leader	C.26.51—Manufacture of instruments and appliances for measuring, testing and navigation	SIEC The investigation showed that the transaction, as initially notified, would have significantly reduced competition in the production and supply of (i) cell culture media and sera, (ii) gene deletion products and (iii) polymer-based magnetic beads These concerns were based on the large combined market shares of the merged entity and the presence of significant barriers to entry, namely (i) the considerable time and investment required to establish the necessary track record and reliability as a supplier, (ii) the limited availability of the required equipment (blood), but also (iii) the presence of IP rights, technical know-how and established commercial relationships	Efficiency gains were not claimed	Yes, subject to conditions	No
26.11.2014	M.7353 Airbus/Safran/JV Aerospace and defence JV between Airbus and Safran Airbus Group N.V. of the Netherlands is active in the aerospace and defence industry. Its activities include the design, manufacture and worldwide sale of civil space launchers, launch vehicle subsystems and equipment, satellites, satellite subsystems and equipment. Airbus is also active in strategic and tactical missiles Safran S.A. of France is active in aerospace propulsion, aircraft equipment, defence and security. Its activities include the production of liquid and solid propellant engine propulsion systems for launch vehicles and electric propulsion systems for satellites. Safran is also active in strategic and tactical missile propulsion	C.30.30—Manufacture of air and spacecraft and related machinery; C.25.40—Manufacture of weapons and ammunition	Significant impact on competition The Commission examined the competitive effects of the proposed transaction and concluded that, as initially notified, it would have significantly reduced competition in the supply of satellites and spacecraft Indeed, the JV would have an incentive to exclude or limit access of Airbus’s competitors to a number of important components The transaction could also have led to exchanges of confidential information concerning satellites and their components between the joint venture and Airbus, to the detriment of competitors	The parties did not present a defence based on expected efficiency per se. Instead, they have indicated that the reason behind the creation of the JV was to generate efficiencies and rationalise costs in the new Ariane 6 programme, which both the European Space Agency (ESA) (para. 175) and the Commission’s investigation have confirmed (para. 174)	Yes, subject to conditions	No
20.07.2016	M.7724 ASL/Arianespace Acquisition of Arianespace by ASL Arianespace is a French company that provides satellite launch services to private and institutional satellite operators Airbus Safran Launchers (ASL) is a 50/50 JV between Airbus and Safran that manufactures the Ariane launcher	C.30.30—Manufacture of air and spacecraft and related machinery	Potential flows of sensitive information The Commission was concerned that the transaction could lead to sensitive information flows between Airbus and Arianespace, to the detriment of competing satellite manufacturers and launch service providers. These potential information flows could lead to less competitive bidding and less innovation in the satellite and launch service markets	The parties alleged a series of efficiencies, all of which were rejected in full by the Commission (paras 436 to 444)	Yes, subject to conditions	No
29.05.2019	M.8858 Boeing/Safran/JV (auxiliary power units) Creation of a joint venture by Boeing and Safran for the production of auxiliary power units The joint venture will manufacture APUs which provide electrical power to the aircraft when the engines are shut down The Boeing Company, a U.S.-based company, designs, manufactures and sells commercial aircraft and defence, space and security systems The French company Safran S.A. designs, manufactures and sells aerospace systems and aerospace and defence equipment	C.30.30—Manufacture of air and spacecraft and related machinery; C.33.16—Repair and maintenance of aircraft and spacecraft	No particular theory of harm The Commission concluded that the proposed acquisition would not raise any competition concerns The overlaps between Safran and the JV are limited: Safran manufactures APUs for military aircraft and helicopters, while the joint venture will manufacture APUs mainly for large commercial aircraft Secondly, the Commission found that despite Boeing’s strong position in the manufacture of large commercial aircraft, the transaction is unlikely to lead to the foreclosure of competing APU suppliers from the market for commercial aircraft APUs. In fact, the transaction will lead to the creation of an entrant in this market	Efficiency gains were not claimed	Yes	No
21.06.2019	M.9234 Harris Corporation/L3 Technologies Harris Corporation to acquire L3 Technologies Harris Corporation, based in the United States, is a global aerospace and defence technology company that provides products, systems and services for defence, civilian government and commercial applications L3 Technologies, based in the United States, is an international aerospace and defence systems company that provides intelligence, surveillance and reconnaissance, communications and electronics systems for military, homeland security and commercial aviation customers	C.26.3—Manufacture of communication equipment; C.26.7—Manufacture of optical instruments and photographic equipment; C.27.9—Manufacture of other electrical equipment; C.25.4—Manufacture of weapons and ammunition	SIEC With respect to night vision devices, the Commission found that Harris Corporation and L3 Technologies compete directly in the markets for image intensified night vision devices and image intensified tubes. The proposed transaction, as originally notified, would have significantly reduced competition in these markets, leading to higher prices and reduced choice for ministries of Defence, commercial customers and others As regards portable video data links, the Commission concluded that the proposed merger would not give rise to any competition concerns, as the merged entity would continue to face a number of credible competitors	Efficiency gains were not claimed	Yes, subject to conditions	No
19.02.2021	M.9945 S Healthineers/Varian Medical Systems Acquisition of Varian by Siemens Healthineers Siemens A.G., headquartered in Germany, is a globally active technology group focused on various fields, including medical technology and digital healthcare services. Its subsidiary Siemens Healthineers provides healthcare solutions and services worldwide, including medical imaging solutions Varian, headquartered in the United States, is a global provider of medical devices and software solutions for the treatment of cancer and other conditions with radiation therapy and other advanced treatments	C.26.60—Manufacture of irradiation, electromedical and electrotherapeutic equipment	SIEC The Commission was concerned that the transaction, as originally notified, would lead to the foreclosure of competitors in the markets for (i) the provision of medical imaging solutions, as well as (ii) the provision of radiotherapy solutions. This could occur through the degradation of interoperability (i) between Siemens Healthineers’s imaging solutions and third-party radiation therapy solutions, as well as (ii) between Varian’s radiation therapy solutions and third-party medical imaging solutions. The foreclosure of competitors resulting from the acquisition would therefore likely have led to a reduction in product choice and a loss of innovation to the detriment of customers and patients	The parties claimed efficiencies for customers in terms of lower prices and the availability of new innovative products in a faster and more efficient way (para. 122), which had been confirmed by their customers (para. 130). The Commission approved the transaction without conducting a systematic analysis of the efficiencies (para. 131)	Yes, subject to conditions	No
20.05.2021	M.10059 SK Hynix/Intel’s Hand and SSD Business Acquisition of Intel’s NAND and SSDs business by SK Hynix Intel Corporation’s (U.S.) NAND and SSDs business is active in the manufacture and sale of products using the NAND flash memory SK Hynix Inc. of the Republic of Korea designs and manufactures memory storage devices such as DRAM (Dynamic Random Access Memory), NAND flash memory and NAND-based SSDs, as well as CMOS (Complementary Metal Oxide–Semiconductor)	C.26.2—Manufacture of computers and peripheral equipment	SIEC The Commission concluded that the proposed acquisition would not give rise to any competition concerns, given the limited horizontal overlaps and the limited effects resulting from the vertical relationships between the companies In addition, the Commission found no concerns regarding the companies’ activities in neighbouring markets, as the companies would not have the ability and/or incentive to engage in exclusionary practices, and even if they did, there would be no appreciable effect on the markets	Efficiency gains were not claimed	Yes	No