Merger control in dynamic markets

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The modern competition dynamics observed in rapidly-evolving sectors, such as high-technology, consumer services and online retail, is challenging the role of competition authorities in merger control, where enforcement decisions fundamentally depend on an effects-based analysis of the likely future effects of the merger. As these sectors are typically characterised by high entry and exit rates, as well as innovations that continuously disrupt existing business models and create entirely new markets, it is increasingly harder for authorities to predict how markets will evolve in order to support merger decisions. This is further aggravated by the fact that many of the merger tools currently available tend to focus on static measures of competition.

In December 2019, the Global Forum on Competition held a discussion on the topic to understand the relelevant timeframe of merger control and to try to determine how far into the future should authorities look when assessing the effects of a merger. Delegations have further discussed the topic in three breakout sessions to see how to adapt in practice the different stages of the review process, in order to better assess mergers in dynamic environments: breakout sessions 1 and 2 focused on the competitive assessment of mergers, breakout session 3 on efficiency effects and design of remedies.

In February 2020 the topic was once more explored at the 2020 OECD Competition Open Day.

2020 OECD COMPETITION OPEN DAY

2020 Session on Merger Control in Dynamic Markets, OECD Competition Open Day

Mergers in dynamic markets was one of the topics of our OECD Competition Open Day held in Paris on 26 February 2020. A networking event open to all competition community and the media.

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Speakers

Giulio FEDERICO Bio ‌
Head of Unit, Chief Economist Team, DG COMP, European Commission