Competitive Effects of Merger Remedies in Europeâ€™s High-Tech Industry
Stephanie Rosenkranz () and
Hans Schenk ()
No 12-16, Working Papers from Utrecht School of Economics
Using an event study methodology, this paper assesses the competitive effects of remedies implemented by the European Commission in 11 horizontal mergers in the ICT industry between 1990 and 2010. The estimates of merger announcement effects for both merging parties and competitors have predominantly insignificant residuals, suggesting that collusion and anti-competitive effects are not implied by the market reactions to merger announcements. Remedies, both behavioural and structural, appear to be largely ineffective in negating the competition concerns of the Commission, even if properly applied to anti-competitive mergers. Moreover, behavioural remedies appear to transfer rents from merging parties to competitors. These findings suggest that static economic models are ineffective in analysing dynamic markets, possibly as a result of inadequate market definitions.
Keywords: Merger remedies; competition policy; industrial competitiveness; ICT; M&A; event study (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cse, nep-eur and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:use:tkiwps:1216
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in Working Papers from Utrecht School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Marina Muilwijk ().