What do competition lawyers do?

In this newsletter, we take a look at the broad range of work that competition lawyers can advise on, and we highlight some of the reasons why lawyers find this practice area appealing.

You can listen to this article instead of reading it via our blog post covering the same topic.

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Now, back to competition law...

The role of competition lawyers

Competition lawyers may advise on whether a deal could be deemed anti-competitive and thus blocked by a regulator, which would involve analysing whether that deal might result in a “substantial lessening of competition” (or even a monopoly) in the relevant jurisdiction(s).?

This can involve a detailed analysis of many factors, including:

• The deal parties’ respective market shares.
• Their principle activities.
• The use, purpose, design and composition of their products and services.
• The ingredients or materials from which their products are derived.
• Whether one party’s products can substitute or complement the other’s.
• The prices they charge; and the locations from which the parties operate.?

Competition lawyers will also need to assess their findings in light of any applicable competition-related regulations in the relevant jurisdiction(s).

What if competition issues do exist?

Where competition issues do arise, competition lawyers may need to help clients sell to regulators why the proposed transaction will not result in a substantial lessening of competition, or guide the prospective buyer through the process of meeting any conditions set by the regulator that must be fulfilled before the deal will be approved.

Such conditions might require the buyer to, for example, “divest” (i.e. sell) parts of its existing business or purchase fewer of the seller’s assets.

Note that deals can collapse where a competition team’s analysis clearly indicates a deal will be blocked by competition authorities.?

Competition lawyers may also advise on contentious matters involving, for example, disputes around state aid, assertions that companies have formed cartels, claims that companies have entered into other allegedly anti-competitive agreements, or disputes with regulators about alleged anti-competitive behaviour.

Why do people enjoy competition law?

As competition law applies to all industries, a seat in a firm’s competition team can give you exposure to a broad range of clients and sectors, which can provide a varied and interesting experience.?

Moreover, competition lawyers need to understand their clients’ products and services in detail, including how those products and services fit into the wider market, so a seat in a Competition team can be more commercially-focused than seats in some other teams.?

A seat in competition can also involve more “academic” work than your typical transactional seat, as a result of the legal analysis (at both the UK and EU level) that competition lawyers must apply to clients’ businesses and markets.?

In addition, politicians often use merger control mechanisms to intervene in merger proposals that are politically sensitive or unpopular with the public, so the strong political aspect that can underpin competition-related matters may also appeal.?

Finally, if you enjoy persuasive writing, you may well enjoy a competition seat. A merger filing often involves working with a myriad of economists and other advisers to construct a narrative about why a merger will not have an adverse impact upon competition in the market.?

Although you may be less involved in the material drafting at a junior level, you will need to be well versed in this narrative as it informs every step of the merger control process.?

For a deeper insight into the role of key practice areas and trainee solicitors, including in the context of acquisitions, complete Commercial Law Academy’s?Introduction to commercial law?course and?A law firm's role on a transaction?case study, or pick up the?Training Contract Handbook.

As a reminder,?Commercial Law Academy?offers 23 in-depth courses, covering: insights into legal careers, firm profiles and interview insights, expert advice on writing applications and tackling psychometric tests, dozens of example (verified) successful cover letters and applications, resources to help you prepare for interviews and internships, example interview case studies, M&A and private equity, practical content to help you understand and confidently discuss commercial concepts and current affairs, plus tips on how to network, negotiate, deliver presentations and write professionally. Check out this?animated explainer video?for more information.