Opinion

of the Advisory Committee on Concentrations given at the 71st meeting on 18 November 1999 concerning a preliminary draft decision relating to Case COMP/M.1601 - Allied Signal/Honeywell

(2001/C 164/03)

(Text with EEA relevance)

1. The Advisory Committee agrees with the Commission that the notified operation (a) constitutes a full merger within the meaning of Article 3(1)(a) of the Merger Regulation, and (b) has a Community dimension.

2. The Advisory Committee agrees with the Commission that:

(a) within the avionics sector a distinction should be made between the following segments: air tansport, regional/business aviation, general aviation, helicopters and military/space applications;

(b) with regard to ACAS processors and mode S transponders in the air transport segment and in the regional/business aviation segment, it can be left open whether they constitute different product markets;

(c) CMU and ACARS belong to the same product market;

(d) weather radar in the regional/business aviation segment and weather radar for civil helicopters each constitute different product markets;

(e) with regard to other avionics products (such as GPS, IRS, etc.), it can be left open whether they constitute different product markets;

(f) a future market for an IHAS exists;

(g) TAWS constitute a different product market.

3. The Advisory Committee agrees with the Commission that the relevant geographic market for avionics products is world wide.

4. The Advisory Committee agrees with the Commission that:

(a) there are serious doubts that the operation would lead to the creation of a dominant position with regard to ACAS processors and mode S transponders in the air transport segment;

(b) there are serious doubts that the operation would lead to the creation of a dominant position with regard to ACAS and mode S transponders in the regional/business aviation segment;

(c) the operation will not lead to the creation or strengthening of a dominant position with regard to CMU and ACARS;

(d) the operation will not lead to the creation or strengthening of a dominant position with regard to weather radars for the regional/business aviation segment;

(e) there are serious doubts that the operation would lead to a strengthening of a dominant position with regard to weather radars for civil helicopters;

(f) there are serious doubts that the operation would lead to a strengthening of a dominant position with regard to TAWS for the air transport, regional/business aviation and general aviation segments and to the creation of a dominant position on the future market for IHAS.

5. The Advisory Committee agrees with the Commission that the commitments proposed by the notifying parties will remove the competitive concerns raised by the notified operation.

6. The Advisory Committee agrees with the Commission that, subject to full compliance with the commitments, the notified operation is compatible with the common market and the functioning of the EEA Agreement.

7. The Advisory Committee invites the Commission to take into account all the other points raised by the Member States during the discussion and in particular with regard to the packaging of avionics and non-avionics products.

8. The Advisory Committee recommends publication of this Opinion in the Official Journal of the European Communities.