Dynamic Effects In Merger Control: European Commission Has Published New Economic Study

The European Commission (“Commission”) has published its “Economic Study on the Dynamic Effects of Mergers”, examining how mergers may affect innovation, investment and competition in future product markets.

Prepared by Oxera and drawing on more than 450 academic publications, the study is intended to provide an analytical foundation for the Commission’s ongoing review of the 2004 Horizontal Merger Guidelines and the 2008 Non-Horizontal Merger Guidelines.

The study’s key findings include:

• Dynamic effects encompass not only changes in incentives to innovate and invest, but also the impact of mergers on market entry, future product-market competition and the price, quality, variety and availability of new or improved products. These effects may amplify, mitigate or counterbalance a merger’s static effects.