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Effective European Antitrust: Does EC Merger Policy Generate Deterrence

Listed author(s):
  • Clougherty, Joseph A.
  • Duso, Tomaso
  • Lee, Miyu
  • Seldeslachts, Jo

We estimate the deterrence effects of European Commission (EC) merger policy instruments over the 1990-2009 period. Our empirical results suggest that phase-1 remedies uniquely generate robust deterrence as – unlike phase-1 withdrawals, phase-2 remedies, and preventions – phase-1 remedies lead to fewer merger notifications in subsequent years. Furthermore, the deterrence effects of phase-1 remedies work best in high-concentration industries; i.e., industries where the HHI is above the 0.2 cut-off level employed by the EC. Additionally, we find that phase-1 remedies do not deter clearly pro-competitive mergers, but do deter potentially anti-competitive mergers in high-concentration industries.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 10959.

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Date of creation: Nov 2015
Handle: RePEc:cpr:ceprdp:10959
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