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Assessing EU Merger Control through Compensating Efficiencies

Author

Listed:
  • Duso, Tomaso
  • Affeldt, Pauline
  • Gugler, Klaus
  • Piechucka, Joanna

Abstract

Worldwide, the overwhelming majority of large horizontal mergers are cleared by antitrust authorities unconditionally. The presumption seems to be that efficiencies from these mergers are sizeable. We calculate the compensating efficiencies that would prevent a merger from harming consumers for 1,014 mergers affecting 12,325 antitrust markets scrutinized by the European Commission between 1990 and 2018. Compensating efficiencies seem too large to be achievable for many mergers. Barriers to entry and the number of firms active in the market are the most important factors determining their size. We highlight concerns about the Commission's merger enforcement being too lax.

Suggested Citation

  • Duso, Tomaso & Affeldt, Pauline & Gugler, Klaus & Piechucka, Joanna, 2021. "Assessing EU Merger Control through Compensating Efficiencies," CEPR Discussion Papers 16705, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16705
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    Cited by:

    1. is not listed on IDEAS
    2. John T. Scott, 2023. "Research Diversity and Invention," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 62(2), pages 179-197, March.
    3. Tomaso Duso & Lea Bernhardt & Joanna Piechucka, 2024. "The Evolution of Theories of Harm in EU Merger Control," Discussion Papers of DIW Berlin 2090, DIW Berlin, German Institute for Economic Research.
    4. Souillard, Baptiste, 2024. "Unilateral effects of mergers with price regulation and quality competition," Economics Letters, Elsevier, vol. 242(C).
    5. Tomaso Duso & Lea Bernhardt & Joanna Piechucka, 2024. "The Evolution of Theories of Harm in EU Merger Control," CESifo Working Paper Series 11218, CESifo.

    More about this item

    Keywords

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    JEL classification:

    • L19 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Other
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law

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