EU Competition Law term that refers to a separate, distinct, and fully functional business entity that is jointly controlled by at least two parents that are not part of the same corporate group. To be fully functioning, the JV must operate in the market performing the operations usually carried out by other autonomous entities in the market (e.g., sales, marketing, purchasing, etc.). To do this it will typically have to possess management dedicated to its day-to-day operation and access to those resources such as staff, finance and tangible and intangible assets, necessary for it to conduct business agreed in the joint-venture agreement on a lasting basis. Where a joint venture does not have access to the markets, for example, an R&D joint venture, it is not usually regarded as Full Function.
The key Competition Law aspect of a Full Function Joint Venture is that it is regarded as concentrative under EU Competition law and so needs to be notified to the European Commission in the same way as a merger, if the joint venturers exceed the Turnover Threshold. (See Merger Regulation, European).