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Merger Control in the New Economy


  • Lars-Hendrik Röller
  • Christian Wey


This paper addresses the potential for conflict between antitrust authorities in the arenaof merger control in the new economy. By "new economy" we mean two relateddevelopments. First, the internationalization of the economy, i.e. the ability to sell andproduce products worldwide, and secondly, markets with certain characteristics such asnetwork effects and other aspects of natural monopoly. We focus on three types ofsubstantive issues in merger control - market definition, assessment of competitiveeffects, and the role of remedies. We argue that the scope for conflict variessignificantly across these three arenas. In particular, conflict over market definition isless likely. By contrast, the assessment of competitive effects and the role of remediesare areas where conflict between antitrust authorities may be more likely in "new economy- type" markets. ZUSAMMENFASSUNG - (Fusionskontrolle in der New Economy) Diese Arbeit identifiziert Konfliktpotentiale zwischen Wettbewerbsbehörden in der Fusionskontrolle von New Economy-Fällen. Mit "New Economy" bezeichnen wir zwei miteinander verbundene Entwicklungen: Erstens die Internalisierung der Ökonomien, womit die Möglichkeiten weltweit zu verkaufen und zu produzieren gemeint sind, und zweitens bestimmte Markteigenschaften wie Netzwerkeffekte sowie Produktionsbedingungen natürlicher Monopole. Wir fokussieren auf drei substantielle Problembereiche internationaler Fusionskontrolle: die Marktabgrenzung, die Einschätzung der Wettbewerbswirkungen und die Rolle von Abhilfemaßnahmen. Wir argumentieren, dass sich die Gefahren internationaler Konflikte sehr unterschiedlich über diese drei Bereiche verteilen. Insbesondere sind Konflikte über die Abgrenzung des relevanten Marktes weniger wahrscheinlich. Im Gegensatz hierzu sprechen eine Reihe von Gründen dafür, dass Konfliktsituationen sowohl bei der Einschätzung der Wettbewerbswirkungen von Fusionen als auch bei der Anwendung von Abhilfemaßnahmen wahrscheinlicher werden in New Economy-Märkten.

Suggested Citation

  • Lars-Hendrik Röller & Christian Wey, 2002. "Merger Control in the New Economy," CIG Working Papers FS IV 02-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  • Handle: RePEc:wzb:wzebiv:fsiv02-02

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    References listed on IDEAS

    1. Lars-Hendrik Röller & Johan Stennek & Frank Verboven, 2006. "Efficiency Gains from Mergers," Chapters,in: European Merger Control, chapter 3 Edward Elgar Publishing.
    2. repec:hhs:iuiwop:543 is not listed on IDEAS
    3. Besanko, David & Spulber, Daniel F, 1993. "Contested Mergers and Equilibrium Antitrust Policy," Journal of Law, Economics, and Organization, Oxford University Press, vol. 9(1), pages 1-29, April.
    4. Neven, Damien J. & Roller, Lars-Hendrik, 2000. "The allocation of jurisdiction in international antitrust," European Economic Review, Elsevier, vol. 44(4-6), pages 845-855, May.
    5. Neven, Damien J. & Roller, Lars-Hendrik, 2005. "Consumer surplus vs. welfare standard in a political economy model of merger control," International Journal of Industrial Organization, Elsevier, vol. 23(9-10), pages 829-848, December.
    6. Katz, Michael L & Shapiro, Carl, 1986. "Technology Adoption in the Presence of Network Externalities," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 822-841, August.
    7. Henning Klodt, 2001. "Conflicts and Conflict Resolution in International Anti-trust: Do We Need International Competition Rules?," The World Economy, Wiley Blackwell, vol. 24(7), pages 877-888, July.
    8. Wey, Christian, 1999. "Marktorganisation durch Standardisierung: ein Beitrag zur Neuen Institutionenökonomik des Marktes," EconStor Books, ZBW - German National Library of Economics, number 122928, March.
    9. Alexis Jacquemin & Peter J. Lloyd & P.K.M. Tharakan & Jean Waelbroeck, 1998. "Competition Policy in an International Setting: The Way Ahead," The World Economy, Wiley Blackwell, vol. 21(8), pages 1179-1183, November.
    10. Damien J. Neven & Lars-Hendrik Röller, 2000. "Scope of Conflict in International Merger Control," CIG Working Papers FS IV 00-14, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    11. Farrell, Joseph & Saloner, Garth, 1986. "Installed Base and Compatibility: Innovation, Product Preannouncements, and Predation," American Economic Review, American Economic Association, vol. 76(5), pages 940-955, December.
    12. Joseph Farrell & Garth Saloner, 1985. "Installed Base and Compatibility With Implications for Product Preannouncements," Working papers 385, Massachusetts Institute of Technology (MIT), Department of Economics.
    13. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
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    1. repec:kap:ejlwec:v:44:y:2017:i:1:d:10.1007_s10657-014-9459-7 is not listed on IDEAS

    More about this item


    Merger; New Economy; Competition Policy; International Conflict;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies


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