Advanced Search
MyIDEAS: Login to save this article or follow this journal

Competition Policy in the European Union: The Lidl/ Plus Acquisition Case in Romania

Contents:

Author Info

  • Nicolae Marinescu

    ()
    (Department of Economic Sciences and Business Administration, Transilvania University of Brasov, Romania)

  • George Florin Vasiluta

    (Computer Generated Solutions SRL, Brasov, Romania)

Abstract

In the context of a growing Romanian retail market in recent years, we analyse the acquisition of retail chain Plus by discounter Lidl, finalised in 2010. The subject is treated from the perspective of EU competition policy. We begin with a literature review on the main concepts used in competition policy and the major provisions of competition law in the EU. In section 2 we examine the involved parties in the concentration, namely Plus and Lidl. The starting hypothesis is that the concentration sets the stage for a potential dominant position able to distort effective competition in the EU and Romania. Section 3 comprises the detailed analysis of the case. First, we identify the dimension of concentration. Further, we calculate specific market concentration indicators, such as the concentration ratio and the Herfindahl-Hirschman index. We also determine the relevant market in product and geographical terms. Finally, we investigate the possible effects of the concentration on competitors, suppliers and consumers. We find that the acquisition of Plus by Lidl in Romania does not erect significant barriers to effective competition, by means of a dominant position. Also, the deal does not impede access to sources of supply and has no obvious detrimental effects on consumers.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://tbs.ubbcluj.ro/RePEc/bbn/journl/Negotia_3_2012.pdf
File Function: Revised version, 2012
Download Restriction: no

Bibliographic Info

Article provided by Babes-Bolyai University, Faculty of Business in its journal JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA.

Volume (Year): (2012)
Issue (Month): ()
Pages:

as in new window
Handle: RePEc:bbn:journl:2012_3_2_marinescu

Contact details of provider:
Postal: Str Horea nr. 7, Cluj-Napoca 400174
Phone: 004 0264 599170
Fax: 004 0264 590110
Email:
Web page: http://www.tbs.ubbcluj.ro/
More information through EDIRC

Related research

Keywords: competition policy; acquisition; relevant market; concentration ratio; Herfindahl index;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bbn:journl:2012_3_2_marinescu. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cornelia Pop).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.