Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Thursday, December 17, 2009

Are All Mergers Equally Delay-Averse? An Empirical Analysis of Procedural Delay in European Commission Merger Cases (1999-2008)

Posted by D. Daniel Sokol

Peter L. Ormosi, ESRC Centre for Competition Policy has a nice empirical piece on Are All Mergers Equally Delay-Averse? An Empirical Analysis of Procedural Delay in European Commission Merger Cases (1999-2008).

ABSTRACT: This article looks at the distribution of two EC merger procedural events and examines the effect of the indefinite-length suspension of merger investigations. Although the ECMR refers to the suspension of investigations as an exceptional instrument, it is used in a high proportion of cases. As the ECMR does not set a time limit for suspension, it can lead to significant delay in the assessment of mergers. To understand the causes of delay, this article relies on the fact that the suspension of the investigation is a consequence of merging parties’ failure to provide the necessary information to the Commission. Two main causes of this behaviour are identified. Firstly, merging parties may decide to intentionally withhold information in order to cause the suspension of the investigation, which allows them more time to do whatever is necessary to avoid a lengthy second phase investigation. Secondly, failure to provide the required information to the Commission may be a result of merging parties’ negligence towards the regulatory assessment of their merger. Whereas the first case may be socially beneficial, identifying the second type of behaviour may help in filtering out inefficient mergers.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/12/are-all-mergers-equally-delayaverse-an-empirical-analysis-of-procedural-delay-in-european-commission.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a72cb5c9970b

Listed below are links to weblogs that reference Are All Mergers Equally Delay-Averse? An Empirical Analysis of Procedural Delay in European Commission Merger Cases (1999-2008):

Comments

Post a comment