Atlantic Divide or Gulf Stream Convergence: Merger Policies in the European Union and the United States

56 Pages Posted: 25 Mar 2007 Last revised: 19 Jul 2010

Mats Bergman

Södertörn University, Stockholm

Malcolm B. Coate

U.S. Federal Trade Commission (FTC)

Maria Jakobsson

Stockholm University - Department of Economics

Shawn W. Ulrick

U.S. Federal Trade Commission (FTC)

Date Written: April 13, 2010

Abstract

We collect a sample of EU and US in-depth merger investigation, estimate models of the regulatory decisions and use the models to compare merger policies in the two jurisdictions. The approach used allows us to decompose observed differences between merger decisions into regime effects and case-mix effects. Focusing on dominant-firm mergers, we find that EU is tougher than the US on average and on mergers resulting in low market shares. We also find that US policy is more affected than EU policy by a range of market considerations.

Keywords: merger policy, antitrust, market dominance

JEL Classification: K21, L22, L40

Suggested Citation

Bergman, Mats and Coate, Malcolm B. and Jakobsson, Maria and Ulrick, Shawn W., Atlantic Divide or Gulf Stream Convergence: Merger Policies in the European Union and the United States (April 13, 2010). Available at SSRN: https://ssrn.com/abstract=975102 or http://dx.doi.org/10.2139/ssrn.975102

Mats A. Bergman

Södertörn University, Stockholm ( email )

Alfred Nobels allé 7, Flemingsberg
Stockholm, Stockholm 14189
Sweden

Malcolm B. Coate (Contact Author)

U.S. Federal Trade Commission (FTC) ( email )

601 Pennsylvania Avenue, NW
Washington, DC 20580
United States

Maria Jakobsson

Stockholm University - Department of Economics ( email )

S-10691 Stockholm
Sweden

Shawn W. Ulrick

U.S. Federal Trade Commission (FTC) ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

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