Tuesday, May 14, 2019
Pauline Affeldt, German Institute for Economic Research (DIW Berlin); Technische Universität Berlin (TU Berlin), Tomaso Duso, German Institute for Economic Research (DIW Berlin); TU Berlin- Faculty of Economics and Management - Empirical Industrial Organization, and Florian Szücs, Vienna University of Economics and Business offer a retrospective of 25 Years of European Merger Control. Worth reading!
ABSTRACT: We study the evolution of the EC’s merger decision procedure over the first 25 years of European competition policy. Using a novel dataset constructed at the level of the relevant markets and containing all merger cases over the 1990-2014 period, we evaluate how consistently arguments related to structural market parameters were applied over time. Using non-parametric machine learning techniques, we find that the importance of market shares and concentration measures has declined while the importance of barriers to entry and the risk of foreclosure has increased in the EC’s merger assessment following the 2004 merger policy reform.