What happens if the CCD test is passed?

When the CCD (Compatibility and Capacity Determination) test is passed, one of the key outcomes is that notification must be made to the European Commission (EC). This step is crucial because, although passing the test indicates that the merging entities meet certain regulatory standards, it serves to formally alert the EC to the transaction for further assessment. The EC will review the proposed merger to ensure that it does not infringe on competition laws and is in the public interest.

In the context of merger regulation, simply passing the CCD test does not imply that the merger can proceed without further scrutiny; thus, other options suggesting automatic approval or no action required are not accurate. Moreover, the imposition of penalties typically occurs under specific circumstances such as antitrust violations or non-compliance, rather than being a standard consequence of passing the CCD test.