The highly anticipated FSR regulation is now in force. But as the regulation beds in, its extensive information requirements mean that companies will need to engage early with the Commission to establish a pragmatic approach to disclosure - particularly for unproblematic contributions unrelated to M&A transactions - to avoid delays.
Authorities will continue to innovate to get problematic transactions through the door - whether or not they satisfy jurisdictional thresholds. And for those under review, we can expect expansive theories of harm (especially in the tech sector) and the consideration of other factors including labour mobility, “green” and public interest concerns, as part of the substantive merger analysis.
2024 will see the continued spread and strengthening of investment screening regimes. But while existing regimes streamline and focus, several jurisdictions have begun plans for outbound investment screening, tackling the outflow of knowhow and investment into critical technologies abroad.
Regulators will be doubling down on sectors which impact households and livelihoods – prioritising groceries and energy, along with “green” issues. And across this, concurrent consumer protection powers will be put to the test, with some authorities (especially in the UK) expecting turbocharged new enforcement powers.
Labour markets remain a priority for antitrust enforcers, who increasingly view labour restrictions as harmful for the economy, leading to lower wages and poorer benefits and working conditions. From raids targeting no-poach agreements to caps and bans on non-competes, we can expect to hear much more on HR issues in antitrust in 2024.
With a panoply of antitrust guidance from various authorities either in force or in draft form, businesses can expect increased clarity and some level of cohesion (in Europe and increasingly Asia) on the treatment of sustainable agreements in 2024.
Amidst ongoing challenges to the scope of the DMA, other regulators are following the EU’s lead. In the UK, the DMCC is expected to take effect before the end of 2024, bringing with it a suite of substantial powers. Antitrust enforcement will continue outside the scope of the DMA, with key judgments expected in the coming year in the US and EU.
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