Eminent economists Kwoka, Valletti, and White discuss the evolving landscape of antitrust economics, analyzing key cases like Google in the US and EU. They explore challenges in competition policy, delve into labor market impacts, and debate the effectiveness of remedies in addressing antitrust concerns.
Efficiencies in mergers faced with skepticism, need for scrutiny and substantiated benefits post-merger.
Advocacy for structural remedies to enhance post-merger competition, emphasis on countering anticompetitive effects.
Calls for increased merger enforcement, focus on preventing monopolization, promoting fair market competition.
Deep dives
The Evolution of Competition Policy Around Mergers
Agencies are seeking to set criteria and provide baseline information for claimed efficiencies in mergers. Efficiencies involving already large firms are met with skepticism, especially in terms of antitrust intervention. Remedy frameworks and aggressive treatment post-merger are key for addressing competition problems.
Focus on Competition Remedies and Skepticism Towards Efficiencies
Efficiency claims post-mergers are to be screened and skepticism applied, especially to purported efficiencies of already large firms. Efforts to discipline claims and ensure substantiated benefits post-merger are vital.
Advocating for Structural Remedies and Viability Post-Merger
Advocacy for more structural remedies, viably increasing post-merger competition to counteract anticompetitive effects. The focus is shifting towards yes-or-no decisions or requiring structural changes to ensure market competition.
Reigniting Competition via Merger Control
Calls for increased merger enforcement to counter monopolization and market power abuse, especially in sectors with high concentration. Emphasis on 'make rather than buy' strategies to prevent firms from becoming excessively large and monopolistic.
Enhancing Competition Policy in Europe
European competition policy aims to become more assertive and muscular, blocking mergers that could lead to monopolistic behavior or abuse of market dominance. Historical lack of enforcement may prompt renewed focus on merger control to foster fair market competition.
Hear the editors of the new book Antitrust Economics at a Time of Upheaval: Recent Competition Policy Cases on Two Continents discuss the recent resurgence and transformation in competition policy and economics in the US, the EU and the UK. Professors John Kwoka, Tommaso Valletti and Lawrence White talk to Capitol Forum Executive Editor Teddy Downey about some of the cases they see as “flashpoints” in the competition paradigm shift and explain the economic implications of recent enforcement actions.
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