The "more economic approach" in EU merger control: A critical assessment
AbstractWith the "more economic approach" the EU is taking a new tack on merger control policy. This is visible not only in the new SIEC prohibition criterion and the criteria for appraising horizontal mergers but also in more recent decision-making practice. Greater legal certainty, on the one hand, and improved decision-making, on the other, have been cited as the aims of the (increased) use of industrial economics models and quantitative analysis. The objective of a (better) economic foundation in EU merger control is expressly welcomed. However, on closer analysis it is found that in point of fact the more economic approach in its present form creates less legal certainty, while the upshot in terms of the quality of the decision-making is at least unclear. At the same time, the (administrative) burden is likely to rise. Moreover, certain problems emerge for instance from the increasing involvement of economic experts or the possibilities for (industrial policy-related) political intervention. In conclusion, a broader perception of an economics-based approach which takes account especially of the institutional implications is called for. Specific recommendations are the establishment of an independent competition authority and the stronger orientation of merger control to (more) general rules. --
Download InfoIf 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.
Bibliographic InfoPaper provided by Deutsche Bank Research in its series Research Notes with number 21e.
Date of creation: 2006
Date of revision:
Competition policy; EU merger control; economic analysis;
Find related papers by JEL classification:
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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.:
- Ivaldi, Marc & Verboven, Frank, 2005.
"Quantifying the effects from horizontal mergers in European competition policy,"
International Journal of Industrial Organization, Elsevier,
Elsevier, vol. 23(9-10), pages 669-691, December.
- Ivaldi, Marc & Verboven, Frank, 2001. "Quantifying the Effects from Horizontal Mergers in European Competition Policy," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2697, C.E.P.R. Discussion Papers.
- Capps Jr., Oral & Church, Jeffrey & Alan Love, H., 2003. "Specification issues and confidence intervals in unilateral price effects analysis," Journal of Econometrics, Elsevier, Elsevier, vol. 113(1), pages 3-31, March.
- Arndt Christiansen, 2006. "The "more economic approach" in EU merger control," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 7(1), pages 34-39, 04.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.