Power and Reach in European Antitrust Cases
38 Pages Posted: 31 May 2006
Date Written: July 2003
This study analyses antitrust decisions taken by the European Commission (the Commission) under the EC Merger Regulation (ECMR). We find that market share measures of dominance are highly significant in influencing the outcome of a decision. This runs contrary to some general pronouncements of the Commission emphasising that market shares provide no more than a "first indication" of whether a merger raises competition concerns. Contestability of markets is also important, as is the geographic reach of a proposed concentration, although there is no evidence of a systematic bias against US or Nordic incorporated firms. We argue that this is consistent with the view that the Commission's approach to antitrust cases reflects its role as a genuinely federal actor in determining and shaping merger control throughout the EU.
Keywords: Antitrust, European Commission, Probit Analysis
JEL Classification: C25, K21, L40
Suggested Citation: Suggested Citation