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Did the European Union's Market Dominance Policy Have a Gap? Evidence from Enforcement in the United States

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Abstract:

The European Union (EU) and the United States (US) enforce the world's two best known merger policies. The EU addresses transactions that are likely to impede effective competition, historically, with some type of dominance analysis, while the US focuses on mergers that are likely to substantially lessen competition, using either a unilateral effects or a coordinated interaction (collusion) analysis. Although EU regulators identified a gap in their policy relative to the US regime, it is unclear if the gap is material. This paper uses simulation analysis and a review of a sample of US merger analyses to show the EU gap is relatively small and limited to collusion analysis. Policy differences, due to regime-specific enforcement standards, remain possible, because the gap only alleged a difference in safe harbour policies.

Document Type: Research Article

Publication date: December 1, 2009

More about this publication?
  • This scholarly, peer-reviewed publication of original articles and analysis of current developments in competition law is designed to complement and augment the existing literature with a special focus on European developments. Topics include:
    • Vertical and Conglomerate Mergers
    • Enlargement of the Union - the ramifications for Competition Policy
    • Unilateral and Coordinated Effects in Merger Control
    • Modernisation of European Competition law
    • Cartels and Leniency
    • Article 82- restatement or evolution?
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