The objective of this Paper is to investigate the determinants of EU merger control decisions. We consider a sample of 164 EU merger control decisions and evaluate the anti-competitive consequences of these mergers from the reaction of the stock market price of competitors to the merging firms. We then account for the discrepancies between the actual decisions and what the stock market would have dictated in terms of the political economy surrounding the cases. Our results suggest that the commission’s decisions cannot be solely accounted for by the motive of protecting consumer surplus. The institutional and political environment does matter. As far as firms’ influence is concerned, however, our data suggests that the commission’s decisions are not sensitive to firms’ interests. Instead, the evidence suggests that other factors – such as country and industry effects, as well as market definition and procedural aspects – do play significant roles.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
3880.
Find related papers by JEL classification: K20 - Law and Economics - - Regulation and Business Law - - - General L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Lars-Hendrik Röller & Johan Stennek & Frank Verboven, 2000.
"Efficiency Gains from Mergers,"
CIG Working Papers
FS IV 00-09, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Tomaso Duso & Klaus Gugler & Burcin Yurtoglu, 2006.
"EU Merger Remedies: A Preliminary Empirical Assessment,"
Discussion Papers
81, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
[Downloadable!]
Other versions:
Tomaso Duso & Klaus Gugler & Burçin Yurtoglu, 2006.
"How Effective is European Merger Control?,"
CIG Working Papers
SP II 2006-12, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
[Downloadable!]
Other versions:
Tomaso Duso & Klaus Gugler & Burcin Yurtoglu, 2006.
"How Effective is European Merger Control?,"
Discussion Papers
153, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
[Downloadable!]