Monday, February 9, 2009
Posted by D. Daniel Sokol
Malcolm B. Coate and Andrew J. Heimert (both of the FTC) are authors of the important Merger Efficiencies at the Federal Trade Commission 1997–2007.
ABSTRACT: The Federal Trade Commission and the United States Department of Justice significantly expanded the efficiencies section of the Horizontal Merger Guidelines in April 1997. The revisions enhanced the structure and clarified the framework for determining when claimed efficiencies should be recognized and introduced a balancing analysis that weighed these efficiencies against the potential harm to consumers. This study reviews how FTC staff has treated efficiencies claims in the ensuing ten years, considering 186 mergers in which the Commission staff completed a second request investigation, between April 1997 and March 2007.