An Empirical Assessment of the 2004 EU Merger Policy Reform
WZB Discussion Paper SP II 2010-16
36 Pages Posted: 8 Dec 2010 Last revised: 31 Jul 2013
Date Written: July 2013
We evaluate the economic impact of the change in European merger legislation in 2004 and propose a general framework focusing on four different policy dimensions: 1) predictability, 2) decision errors, 3) reversion of anti-competitive rents, and 4) deterrence. We find that after the reform the predictability and the accuracy of decisions have improved. Yet, the policy shift away from prohibitions, which entail both an immediate and a deterrent effect, does not seem to be well-grounded.
Keywords: merger control, regulatory reform, EU Commission, event-study
JEL Classification: L4, K21, C13, D78
Suggested Citation: Suggested Citation