Recent Developments at DG Competition: 2017/2018

Abstract

The Directorate General for Competition at the European Commission enforces competition law in the areas of antitrust, merger control, and state aids. This year’s article provides first a general presentation of the role of the Chief Competition Economist’s team and surveys some of the main achievements of the Directorate General for Competition over 2017/2018. The article then reviews: the Google Search (Shopping) case, the role of price discrimination in state aid cases; and the use of counterfactuals in merger cases where alternative transactions might have occurred absent the merger.

Concentration, Market Power and Dynamism in the Euro Area

“…If, as some suggest (e.g., Gordon 2016) 30 , technological progress is slowing then the US may then be in a position of having highly concentrated but essentially stagnant markets. Moreover, federal anti-trust enforcement has traditionally been seen as weaker compared to the EA, which, if true, may prove a stumbling block to managing such an outcome (e.g., Jennings (2006), Amelio et al (2018)).…”

“…Moreover, there still seem to be many firms and industries with excessively high markups, given, the high number of competing firms, or the apparent absence of any particular technological advantage underpinning their power. A situation of persistent and exceptional profits with little in the way of new entrants, suggests a role for reduced product market regulation and a strengthening of competition policies (e.g., Amelio et al 2018).…”

Antitrust and Innovation: Welcoming and Protecting Disruption

“…If the proposed merger followed active rivalry to acquire the target firm, the alternative acquirer might be easier to identify. For a discussion of alternative counterfactuals in mergers (including specific cases with identifiable alternative purchasers), see Amelio et al (2018). 45 For a discussion of this point, see Cunningham et al (2019).…”

Recent Developments at DG Competition: 2015/2016

“…Between January 2018 and July 2019, the European Commission took decisions in 16 (non-cartel) antitrust cases. Four of these cases-involving Qualcomm, Gazprom, Greek lignite, and Asus/Denon&Marantz/Pioneer/Philips-are listed and briefly discussed in Amelio et al (2018). The Google Android case is reviewed in depth in Sect.…”