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Scope of Conflict in International Merger Control

Listed author(s):
  • Damien J. Neven
  • Lars-Hendrik Röller

In this paper, we analyze the scope for conflict between national merger control agencies which assert jurisdictions simultaneously. We consider a positive model of merger control in which market definition and the analysis of dominance are both explicitly specified. We find that conflict in international merger control is less likely to occur when economic integration is high. Hence, globalisation should alleviate rather than exacerbate conflict. In addition, we observe that conflict is less likely to arise between countries of different size and for extreme policy rules (very lenient or very strict) towards dominance. ZUSAMMENFASSUNG - (Die Konfliktmöglichkeiten bei internationaler Fusionskontrolle) In diesem Beitrag werden die Konfliktpotentiale zwischen Kartellbehörden untersucht. Die Analyse basiert auf einem positiven Ansatz der Fusionskontrolle, in dem die Kartellbehörde explizit modelliert wird. Es zeigt sich, daß Konflikte bei der internationalen Fusionskontrolle weniger wahrscheinlich sind, wenn Unternehmen auf integrierten Märkten konkurrieren. In diesem Sinne führt eine "Globalisierung" der Weltwirtschaft zu einer Reduzierung des Konfliktpotentials zwischen Wettbewerbsbehörden.

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Paper provided by Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG) in its series CIG Working Papers with number FS IV 00-14.

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Length: 21 pages
Date of creation: Oct 2000
Publication status: Published under the Title "On the Scope of Conflict in International Merger Control" in the Journal of Industry, Competition and Trade , Vol. 3(4), Dec. 2003, pp. 235-249.
Handle: RePEc:wzb:wzebiv:fsiv00-14
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