Expanded scope of merger control in Greenland
As of 1 January 2021, more mergers than before will be subject to the notification requirement in Greenland, a consequence of amendments to the Greenlandic Competition Act.
Inatsisartut Act no. 8 of 19 November 2020 amending Inatsisartut Act on Competition
With effect from 1 January 2021, the Parliament of Greenland (the Inatsisartut) has adopted a change to the merger control thresholds in Greenland. Under the current rules, mergers must be notified to the Greenlandic Consumer and Competition Agency if the following two conditions are met:
- The participating enterprises have a combined annual turnover in Greenland of at least DKK 100 million.
- At least two of the participating enterprises each have an annual turnover in Greenland of at least DKK 50 million.
Thus, under the current rules, at least two of the participating enterprises must have an annual turnover in Greenland of at least DKK 50 million. This will now be changed with the introduction of the new thresholds, which, as of 1 January 2021, will require notification where the following three conditions are met:
- The participating enterprises have a combined annual global turnover of at least DKK 100 million.
- At least two of the participating enterprises each have an annual global turnover of at least DKK 50 million.
- At least one of the participating enterprises is situated in Greenland.
It was originally proposed that the thresholds would be lowered from DKK 100 million to DKK 25 million and from DKK 50 million to DKK 10 million, but in the end the bill was changed so that the threshold amounts stay the same, but instead the turnover will be determined on a global rather than national basis. The amendment means that if the participating enterprises have a certain global turnover, the merger will be notifiable in Greenland if only one of them is 'situated' in Greenland, no matter how much of the turnover is generated in Greenland.
The preparatory works of the Act do not define exactly what it takes for an enterprise to be ‘situated’ in Greenland. It does say, however, that the bill is intended to ensure control of mergers between enterprises "sourcing commodities in Greenland for export”. It is said further that the effect of such mergers may be significant, especially for the development of markets "for sourcing of fish and seafood in Greenland, including the price that fishermen receive for their catches”.
The Act also makes the existing whistleblowing arrangement a statutory requirement and ensure, as a statutory requirement, full anonymity for the whistleblower, so that their identity cannot be disclosed through petitions for access to documents. Moreover, the Act introduces the possibility of issuing administrative fine notices.
Contact
