The Increasing Cross-Border Importance of Innovation in Merger Review
Posted: 2 Jan 2019 Last revised: 11 Aug 2019
Date Written: April 1, 2018
In this article, we discuss the specific economic mechanisms underlying how mergers might affect the merging parties’ incentives to innovate ex post. We then discuss these mechanisms in the context of several illustrative merger reviews and challenges brought by U.S. and EU antitrust authorities where concerns about innovation played a meaningful role in the agency’s decision to challenge the merger. And, finally, to provide specific guidance to antitrust practitioners on navigating agency investigations where innovation concerns may feature prominently, we discuss the evidence and analyses used by the antitrust agencies to assess innovation effects in recent merger reviews.
Keywords: antitrust, competition, mergers, innovation, European Commission, Department of Justice (DOJ), Federal Trade Commission (FTC)
JEL Classification: D21, D43, K21
Suggested Citation: Suggested Citation