Full-function joint ventures are subject to notification if the thresholds are exceeded; the turnover of the parent companies is taken into account. Non-compete provisions in the JV agreement are also assessed separately.
Non-compete and other restraints in the JV agreement can ride along with the clearance as “ancillary restraints” — provided they are directly related and reasonably necessary to the venture in scope, duration and geography. Anything broader is assessed on its own, so the drafting of those clauses is where notifiable JVs most often trip up.
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