Transparency and Coordinated Effects in European Merger Control

Posted by D. Daniel Sokol

Svend Albæk (University of Copenhagen), Per Baltzer Overgaard (University of Aarhus) and Peter Møllgaard (Copenhagen Business School) describe Transparency and Coordinated Effects in European Merger Control.

ABSTRACT: In this paper, we first outline the foundations in economic theory of so-called coordinated effects with a particular view to mergers and with a special focus on transparency. Then, we review a number of seminal merger cases in EU competition policy (Airtours, Sony/BMG, ABF/GBI Business) in light of that theory. Next, we discuss in more detail a recent Danish merger prohibition that was based on the presence of coordinated effects. This case poses special challenges to the theory of coordinated effects, because a very large number of products were involved, and significant, individualized discounts were widespread in the market in question. Finally, we briefly present a few other cases in which transparency has been an issue.