Competitive Effects of Merger Remedies in Europeâ€™s High-Tech Industry
AbstractUsing an event study methodology, this paper assesses the competitive effects of remedies implemented by the European Commission in 11 horizontal mergers in the ICT industry between 1990 and 2010. The estimates of merger announcement effects for both merging parties and competitors have predominantly insignificant residuals, suggesting that collusion and anti-competitive effects are not implied by the market reactions to merger announcements. Remedies, both behavioural and structural, appear to be largely ineffective in negating the competition concerns of the Commission, even if properly applied to anti-competitive mergers. Moreover, behavioural remedies appear to transfer rents from merging parties to competitors. These findings suggest that static economic models are ineffective in analysing dynamic markets, possibly as a result of inadequate market definitions.
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Bibliographic InfoPaper provided by Utrecht School of Economics in its series Working Papers with number 12-16.
Length: 38 pages
Date of creation: 2012
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
- NEP-COM-2012-09-22 (Industrial Competition)
- NEP-CSE-2012-09-22 (Economics of Strategic Management)
- NEP-EUR-2012-09-22 (Microeconomic European Issues)
- NEP-TID-2012-09-22 (Technology & Industrial Dynamics)
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.:
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