In the light of the European Union’s (EU) decision to block the General Electric (GE) merger with Honeywell, this article seeks to examine the causes of this decision, why the EU’s decision differed from the US government’s ruling and the implications for co-operation in the field of merger control and antitrust both in transatlantic and global terms. The article argues that given the apparent trend towards increasing numbers of mergers on a global scale, unless States agree to develop tools and procedures for co-operation, there could be an increasing resort to extra-territorial application of domestic antitrust laws, which may lead to increased trade friction between major trading countries. As the GE/Honeywell merger case is so high profile, it is suggested that it may focus policymakers’ minds on resolving similar issues in the future based on a co-operative, multilateral framework. In this context, the article proposes incremental co-operation and joint investigation between relevant antitrust authorities. For global corporate strategy, the article argues that the GE/Honeywell case illustrates the need for more awareness of comparative regulatory differences and a global strategy not exclusively based on merger given the numerous regulatory hurdles this approach needs to clear.
World Competition