2023 Draft Merger Guidelines: A Comment to Add an Anticompetitive Presumption for Exit-Inducing Vertical Arrangements

6 Pages Posted: 12 Feb 2024

See all articles by Javier D. Donna

Javier D. Donna

University of Florida; Rimini Centre for Economic Analysis

Pedro Pereira

Autoridade da Concorrência; Instituto Universitário de Lisboa - ISCTE-IUL - Business Research Unit, BRU-IUL

Date Written: September 6, 2023

Abstract

This document responds to the public inquiry asking for feedback regarding the 2023 Draft Merger Guidelines released on July 19, 2023. Our comment focuses on mergers involving vertical relationships. We recommend a specific addendum to the Draft Merger Guidelines. Specifically,
we suggest adding an anticompetitive presumption regarding vertical arrangements that might induce rivals’ exit. These are vertical mergers or mergers involving vertical relationships that might cause the exit of a current market participant. An exit-inducing vertical merger might substantially lessen competition even if, absent exit, it does not.

Keywords: Antitrust, Vertical Mergers, Rivals’ Exit, Double Marginalization, Merger Evaluation, Competition Policy

JEL Classification: K21, K41, L42, L44, L52

Suggested Citation

Donna, Javier D. and Pereira, Pedro, 2023 Draft Merger Guidelines: A Comment to Add an Anticompetitive Presumption for Exit-Inducing Vertical Arrangements (September 6, 2023). Available at SSRN: https://ssrn.com/abstract=4709489 or http://dx.doi.org/10.2139/ssrn.4709489

Javier D. Donna (Contact Author)

University of Florida ( email )

Gainesville, FL 32606
United States

HOME PAGE: http://www.jdonna.org/

Rimini Centre for Economic Analysis ( email )

Pedro Pereira

Autoridade da Concorrência ( email )

1050-138 Lisboa
Portugal

Instituto Universitário de Lisboa - ISCTE-IUL - Business Research Unit, BRU-IUL ( email )

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