Joint Ventures

“Joint ventures” encompass a variety of means by which companies agree to cooperate in one or more fields, and can range from the creation of joint companies (often requiring notification under the EU or national merger control rules) to more informal agreements between companies to cooperate in certain areas such as research and development, production, purchasing, selling or the creation of industry standards. Joint ventures that are not covered under merger control law cannot be notified for approval at the EU level but must instead be assessed individually by companies and their counsel to ensure their compliance with Article 101 TFEU. The starting points of this assessment are the European Commission’s Horizontal Guidelines and related block exemptions. Many joint ventures are pro-competitive and will often be viewed positively under the applicable rules. However, other cooperative arrangements, in particular those involving cooperation in selling, may raise more difficult issues. As many joint ventures will involve significant investment by the parties, it is crucial for companies to ensure their compliance with this legal framework.

Van Bael & Bellis has extensive experience in assessing the compatibility of all kinds of joint ventures with the EU and Member State competition rules in activities as diverse as developing a new aircraft, marketing pharmaceutical products and establishing internet trading platforms. The firm has represented many clients in the notification of joint venture transactions falling within the EU or national merger control rules. For joint ventures not subject to merger control, we regularly advise clients on the legality under the competition rules of their joint venture arrangements, include the potential applicability of Commission block exemptions or the Commission’s Horizontal Guidelines. The firm’s experience in this area often enables us to propose practical alternatives to allow clients to achieve their objectives while conforming with the competition rules and minimising the risk to the company.