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 (Text with EEA relevance)
Date: 1999-11-18
Institutions: Advisory Committee on Restrictive Practices and Dominant Positions
Subjects: aeronautical industry, application of EU law, competition law, economic concentration, merger control

7.6.2001

EN

Official Journal of the European Communities

C 164/5

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 (cid:151) Allied Signal/Honeywell

OPINION

(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.

(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;

2. The Advisory Committee agrees with the Commission that:

(c)

(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 trans-
ponders
segment and in the
transport
regional/business aviation segment, it can be left open
whether they constitute different product markets;

in the air

(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
for avionics products is

the relevant geographic market
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;

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

lead to the

(d) the operation will not

creation or
strengthening of a dominant position with regard to
weather
aviation
segment;

regional/business

lead to the

radars

the

for

(e)

(f)

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

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
the
notified operation is compatible with the common market
and the functioning of the EEA Agreement.

to full compliance with the commitments,

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.