29.1.2004 Official Journal of the European Union L 24/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) (Text with EEA relevance) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Com- munity, and in particular Articles 83 and 308 thereof, Having regard to the proposal from the Commission (!), Having regard to the opinion of the European Parliament (), Having regard to the opinion of the European Economic and Social Committee (), Whereas: (1) Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between under- takings (*) has been substantially amended. Since further amendments are to be made, it should be recast in the interest of clarity. (2)  For the achievement of the aims of the Treaty, Article 3(1)(g) gives the Community the objective of instituting a system ensuring that competition in the internal market is not distorted. Article 4(1) of the Treaty provides that the activities of the Member States and the Community are to be conducted in accordance with the principle of an open market economy with free competi- tion. These principles are essential for the further devel- opment of the internal market. (3)  The completion of the internal market and of economic and monetary union, the enlargement of the European Union and the lowering of international barriers to trade and investment will continue to result in major corpo- rate reorganisations, particularly in the form of concen- trations. () 0] C 20, 28.1.2003, p. 4. (*) Opinion delivered on 9.10.2003 (not yet published in the Official Journal). (*) Opinion delivered on 24.10.2003 (not yet published in the Official Journal). () O] L 395, 30.12.1989, p. 1. Corrected version in O] L 257, 21.9.1990, p. 13. Regulation as last amended by Regulation (EC) No 1310/97 (OJ L 180, 9.7.1997, p. 1). Corrigendum in OJ L 40, 13.2.1998, p. 17. (4) (6) ) Such reorganisations are to be welcomed to the extent that they are in line with the requirements of dynamic competition and capable of increasing the competitive- ness of European industry, improving the conditions of growth and raising the standard of living in the Com- munity. However, it should be ensured that the process of reor- ganisation does not result in lasting damage to competi- tion; Community law must therefore include provisions governing those concentrations which may significantly impede effective competition in the common market or in a substantial part of it. A specific legal instrument is therefore necessary to permit effective control of all concentrations in terms of their effect on the structure of competition in the Com- munity and to be the only instrument applicable to such concentrations. Regulation (EEC) No 4064/89 has allowed a Community policy to develop in this field. In the light of experience, however, that Regulation should now be recast into legislation designed to meet the chal- lenges of a more integrated market and the future enlar- gement of the European Union. In accordance with the principles of subsidiarity and of proportionality as set out in Article 5 of the Treaty, this Regulation does not go beyond what is necessary in order to achieve the objective of ensuring that competition in the common market is not distorted, in accordance with the principle of an open market economy with free competition. Articles 81 and 82, while applicable, according to the case-law of the Court of Justice, to certain concentra- tions, are not sufficient to control all operations which may prove to be incompatible with the system of undis- torted competition envisaged in the Treaty. This Regu- lation should therefore be based not only on Article 83 but, principally, on Article 308 of the Treaty, under which the Community may give itself the additional powers of action necessary for the attainment of its objectives, and also powers of action with regard to concentrations on the markets for agricultural products listed in Annex I to the Treaty.