Concentrative joint venture meaning

Businesses commonly rely on joint ventures to break into fresh markets and to design, develop, and launch new products. This notion spans a wide array of scenarios and arrangements, including: structural setups that establish or alter the economic control of a given legal entity: joint venture companies themselves partnerships between participants alterations to existing shareholder control non-structural joint ventures: contract-based joint projects informal (not documented) collaborations For many joint venture arrangements, the extent of 'control' each party holds is often pivotal—though its meaning can be understood differently in varying contexts. This is particularly significant in EU competition law in practice. Accordingly, a joint venture’s treatment under those rules depends on whether it is 'concentrative' (structural) or 'cooperative' (non-structural). Structural joint ventures and merger control Where a joint venture brings about a durable structural shift in the market (ie...

A joint venture is a business set-up in which two or more separate undertakings bring together, or share, their resources, assets, or divisions to build a venture or pursue a defined objective, typically over a limited timeframe, for all parties. The logic behind joint venture work is that collaboration delivers more than effort alone, whether with a supplier up the chain or a rival on the same level, through interests and strengths. EU law offers no precise legal definition of a joint venture at present. Such ventures may span merger-style initiatives creating a jointly controlled entity, with its assets, infrastructure, management and customers, through to loose, non-structural collaboration that stops short of forming a separate organisation. At one end, activity might involve light-touch and plainly harmless collaboration, confined to specific functions or tasks, such as research and development or joint purchasing; at the other, it may extend to very intensive co-ordination with competitors in sensitive spheres like pricing and output—perilously approaching, in character, cartel-like behaviour and edging worryingly...