The Increasing Cross-Border Importance of Innovation in Merger Review

Posted: 2 Jan 2019

See all articles by Jennifer Fauver

Jennifer Fauver

Marsh & McLennan Companies - Washington, D.C. Office

Subbu Ramanarayanan

University of California, Los Angeles (UCLA) - Policy Area

Nicola Tosini

NERA Economic Consulting

Date Written: April 1, 2018

Abstract

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

Fauver, Jennifer and Ramanarayanan, Subramaniam and Tosini, Nicola, The Increasing Cross-Border Importance of Innovation in Merger Review (April 1, 2018). Antitrust Magazine, Vol. 32, No. 2, 2018. Available at SSRN: https://ssrn.com/abstract=3287731

Jennifer Fauver

Marsh & McLennan Companies - Washington, D.C. Office ( email )

1255 23rd Street, NW, Suite 600
Washington, DC 20037
United States

Subramaniam Ramanarayanan

University of California, Los Angeles (UCLA) - Policy Area ( email )

110 Westwood Plaza
Los Angeles, CA 90095
United States

Nicola Tosini (Contact Author)

NERA Economic Consulting ( email )

Unter den Linden 14
Berlin, 10117
Germany
30700150670 (Phone)

HOME PAGE: http://www.nera.com/experts/nicola-tosini.html

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