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Vertical Theory Of Harm In A Horizontal Merger: The Friesland Foods/Campina Case

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  • Jurjen J.A. Kamphorst
  • Vitaly Pruzhansky

Abstract

In December 2008, the European Commission (EC) cleared the proposed merger between the two largest dairy cooperatives in the Netherlands. The transaction raised several interesting economic issues that were hotly debated during the EC investigation. In this article, we review the EC's proposed theory of harm relating to the impact of the merger on the market for raw milk in the Netherlands and the ability of the parties' competitors to source raw milk (a critical input) post-merger. We show that the EC's theory is unlikely to be supported by economic theory and facts of the market.

Suggested Citation

  • Jurjen J.A. Kamphorst & Vitaly Pruzhansky, 2012. "Vertical Theory Of Harm In A Horizontal Merger: The Friesland Foods/Campina Case," Journal of Competition Law and Economics, Oxford University Press, vol. 8(2), pages 417-424.
    • Handle: RePEc:oup:jcomle:v:8:y:2012:i:2:p:417-424.
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    File URL: http://hdl.handle.net/10.1093/joclec/nhs009
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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts

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