EU Merger Control and Small Member State Interests
THE PROS AND CONS OF MERGER CONTROL: 10th ANNIVERSARY OF THE SWEDISH COMPETITION AUTHORITY, Swedish Competition Authority, ed., Swedish Competition Authority, Stockholm, 2002
Posted: 24 Feb 2003
Date Written: August 2002
The paper explores the debate on whether firms in small countries are at a disadvantage because of EU merger control. Markets are often national, making it harder for firms in small countries to merge simply because they would very soon reach critical market shares, although they would still be relatively small in absolute size. It may therefore be beneficial for a small country to allow mergers that potentially hurt domestic consumers, since they have the advantage of making the companies large enough to be internationally competitive. A counter argument is that sacrificing consumer interests is not necessary since the companies can engage in cross-border mergers instead.
Keywords: Merger Control, Collective Dominance, Merger Simulation, European Commission, Merger Regulation, Economic Models, Antitrust, Mergers, Oligopoly
JEL Classification: L13, L41
Suggested Citation: Suggested Citation