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A note on conglomerate mergers: The Google/Fitbit case

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  • Nakagawa, Akihiko
  • Matsushima, Noriaki

Abstract

We consider conglomerate mergers using the Google/Fitbit case as an example. First, summarizing the importance of conglomerate merger control and the current enforcement standards for such mergers by competition laws, we briefly describe a review of the Google/Fitbit merger by the Japan Fair Trade Commission. Next, we explain the background of the merger and introduce Chen et al. (2022), who theoretically discuss a cross-market merger by considering the Google/Fitbit merger. Finally, we discuss the implications of Chen et al. (2022) for controlling conglomerate mergers. Specifically, personalized pricing based on data analytics can be a foreclosure device; in particular, merger-specific efficiencies can foster market foreclosure.

Suggested Citation

  • Nakagawa, Akihiko & Matsushima, Noriaki, 2023. "A note on conglomerate mergers: The Google/Fitbit case," Japan and the World Economy, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:japwor:v:67:y:2023:i:c:s0922142523000294
    DOI: 10.1016/j.japwor.2023.101203
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    References listed on IDEAS

    as
    1. Zhijun Chen & Chongwoo Choe & Jiajia Cong & Noriaki Matsushima, 2022. "Data‐driven mergers and personalization," RAND Journal of Economics, RAND Corporation, vol. 53(1), pages 3-31, March.
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    4. Chongwoo Choe & Stephen King & Noriaki Matsushima, 2018. "Pricing with Cookies: Behavior-Based Price Discrimination and Spatial Competition," Management Science, INFORMS, vol. 64(12), pages 5669-5687, December.
    5. Zhijun Chen & Chongwoo Choe & Noriaki Matsushima, 2020. "Competitive Personalized Pricing," Management Science, INFORMS, vol. 66(9), pages 4003-4023, September.
    6. Krista J. Li & Sanjay Jain, 2016. "Behavior-Based Pricing: An Analysis of the Impact of Peer-Induced Fairness," Management Science, INFORMS, vol. 62(9), pages 2705-2721, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Conglomerate mergers; Google-Fitbit; Personalized pricing; Competition law enforcement;
    All these keywords.

    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations

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