Case Study: European Competition Law

We have three companies; all of these produce concrete tiles for the Italian market. Milan Roofing Tile Inc. has got a market share on the Italian market of 35 percent, Rome Tile Inc. a share of 25 percent and Turin Tile Inc. of 40 percent.

Milan Roofing Tile Inc. made Turin Tile Inc. an offer to purchase Turin Tile’s business as a part of Milan Roofing Tile’s expansion strategy.

If Turin Tile Inc. assents there would be an horizontal acquisition (both companies are active on the same market, both produce concrete tiles)1 with the consequence of a 75 percent share of the concrete tile market in Italy. Even if we include the market of shields and tiles which are produced of other materials they would have a high market share, because concrete tiles are the most used material for the roofs in Italy.