EU Merger Control: A Legal and Economic Analysis
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There are very few examples of public policies where politics defers to law and economics. Merger control is one of them, and for good reasons.
There is a general presumption that companies which grow organically do so because they offer goods and services which consumers like and want to buy. But if one company takes over another, or if companies merge by mutual consent, it is not clear whether the result is good for the consumers, or just good for the stakeholders of the companies concerned. It is also difficult to unscramble two companies which have been merged.
This is why many jurisdictions, but in particular the US and Europe, have developed merger control systems which aim to protect consumers and competition, while at the same time making sure that these systems do not frustrate business initiative and innovation.
I am proud to have taken part as the second Director of the Commission’s Merger Task Force in the establishment of a European merger control ‘one-stop shop’ regime of global reputation. The reforms we pushed through in 2003/2004 have arguably helped to create convergent and global best practice in merger control.
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