Innovation in EU merger control: walking the talk
AbstractEuropean Union policymakers have in principle put innovation at the heart of competitiveness, in particular in the Europe 2020 strategy. But in merger control, assessments of the innovation effects of mergers are inadequate, even though mergers and acquisitions can have a significant impact on the development of the structure of an industry, and on its capability to innovate. EU merger control rules include scope for assessing the innovation effects of mergers, but in practice, the European Commission's directorate-general for competition (DG COMP) is not â??walking the talkâ??. Innovation effects are only assessed when claimed by parties to a merger, and this happens rarely. Where innovation effects have been claimed, they have not been decisive in any case, meaning DG COMP has not considered them important enough to influence its decision. A framework should be put in place that makes the reporting of efficiency-related information by the merging parties mandatory, so that innovation effects can be properly assessed for all mergers. In addition, models can be used to make an assessment of the longer-term innovation effects of a merger, and to help inform decision-making. The author acknowledges the excellent research assistance of Joan de SolÃ -Morales and Hendrik Meder, and would like to thank Lars-Hendrik RÃ¶ller for discussing and commenting on earlier versions of the paper.
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Bibliographic InfoPaper provided by Bruegel in its series Policy Contributions with number 708.
Date of creation: Feb 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-14 (All new papers)
- NEP-COM-2012-03-14 (Industrial Competition)
- NEP-EUR-2012-03-14 (Microeconomic European Issues)
- NEP-INO-2012-03-14 (Innovation)
- NEP-KNM-2012-03-14 (Knowledge Management & Knowledge Economy)
- NEP-REG-2012-03-14 (Regulation)
- NEP-TID-2012-03-14 (Technology & Industrial Dynamics)
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- Hans W. Friederiszick & Linda Gratz, 2013. "Hidden efficiencies: On the relevance of business justifications in abuse of dominance cases," ESMT Research Working Papers ESMT-13-10, ESMT European School of Management and Technology.
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